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Nike (NKE) Dips More Than Broader Markets: What You Should Know
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Nike (NKE - Free Report) closed the most recent trading day at $136.28, moving -0.82% from the previous trading session. This move lagged the S&P 500's daily loss of 0.44%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.
Prior to today's trading, shares of the athletic apparel maker had gained 8.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.82% and outpaced the S&P 500's gain of 2.71% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be December 18, 2020. The company is expected to report EPS of $0.63, down 10% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.59 billion, up 2.57% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $42.16 billion. These results would represent year-over-year changes of +78.13% and +12.72%, respectively.
Investors might also notice recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. NKE is currently a Zacks Rank #3 (Hold).
Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 48.3. For comparison, its industry has an average Forward P/E of 41.39, which means NKE is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 2.76 right now. 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 industry currently had an average PEG ratio of 3.62 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Dips More Than Broader Markets: What You Should Know
Nike (NKE - Free Report) closed the most recent trading day at $136.28, moving -0.82% from the previous trading session. This move lagged the S&P 500's daily loss of 0.44%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.5%.
Prior to today's trading, shares of the athletic apparel maker had gained 8.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.82% and outpaced the S&P 500's gain of 2.71% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be December 18, 2020. The company is expected to report EPS of $0.63, down 10% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.59 billion, up 2.57% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $42.16 billion. These results would represent year-over-year changes of +78.13% and +12.72%, respectively.
Investors might also notice recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. NKE is currently a Zacks Rank #3 (Hold).
Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 48.3. For comparison, its industry has an average Forward P/E of 41.39, which means NKE is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 2.76 right now. 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 industry currently had an average PEG ratio of 3.62 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.