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Nike (NKE) Stock Moves -1.25%: What You Should Know

Zacks Equity Research
·3 min read

Nike (NKE) closed at $128.37 in the latest trading session, marking a -1.25% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.86%. Elsewhere, the Dow lost 2.3%, while the tech-heavy Nasdaq lost 1.64%.

Heading into today, shares of the athletic apparel maker had gained 4.2% over the past month, outpacing the Consumer Discretionary sector's gain of 3.34% and lagging the S&P 500's gain of 7.63% in that time.

Investors will be hoping for strength from NKE as it approaches its next earnings release. The company is expected to report EPS of $0.62, down 11.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.83 per share and revenue of $42.18 billion. These totals would mark changes of +76.88% and +12.77%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NKE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.29% higher. NKE is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, NKE is currently trading at a Forward P/E ratio of 45.93. This represents a premium compared to its industry's average Forward P/E of 33.34.

It is also worth noting that NKE currently has a PEG ratio of 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Shoes and Retail Apparel was holding an average PEG ratio of 2.76 at yesterday's closing price.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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