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Nike (NKE) Stock Sinks As Market Gains: What You Should Know

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  • NKE

Nike (NKE) closed at $168.91 in the latest trading session, marking a -0.78% move from the prior day. This move lagged the S&P 500's daily gain of 1.17%. Elsewhere, the Dow gained 1.87%, while the tech-heavy Nasdaq added 0.62%.

Heading into today, shares of the athletic apparel maker had lost 4.1% over the past month, outpacing the Consumer Discretionary sector's loss of 8.83% and lagging the S&P 500's loss of 2.46% in that time.

Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be December 20, 2021. The company is expected to report EPS of $0.62, down 20.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.23 billion, down 0.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $47.11 billion. These totals would mark changes of 0% and +5.76%, respectively, from last year.

Any recent changes to analyst estimates for Nike should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nike is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Nike is holding a Forward P/E ratio of 47.76. This valuation marks a premium compared to its industry's average Forward P/E of 21.24.

It is also worth noting that NKE currently has a PEG ratio of 3.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.11 as of yesterday's close.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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