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Nike (NKE) Stock Moves -0.48%: What You Should Know

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Nike (NKE - Free Report) closed at $132.62 in the latest trading session, marking a -0.48% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.72%.

Coming into today, shares of the athletic apparel maker had gained 0.55% in the past month. In that same time, the Consumer Discretionary sector gained 1.84%, while the S&P 500 gained 6.13%.

NKE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.49, up 196.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.09 billion, up 75.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $43.28 billion, which would represent changes of +95% and +15.72%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. NKE is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NKE is holding a Forward P/E ratio of 42.7. This valuation marks a premium compared to its industry's average Forward P/E of 22.89.

Investors should also note that NKE has a PEG ratio of 2.49 right now. 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. NKE's industry had an average PEG ratio of 1.68 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 174, which puts it in the bottom 32% 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.

To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.


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