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Nike (NKE) Stock Sinks As Market Gains: What You Should Know
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Nike (NKE - Free Report) closed at $143.53 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.
Prior to today's trading, shares of the athletic apparel maker had lost 3.52% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.46% and the S&P 500's loss of 4.03% in that time.
Nike will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nike to post earnings of $0.72 per share. This would mark a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $47.13 billion. These totals would mark changes of +3.65% and +5.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.18% higher within the past month. Nike currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 39.31 right now. Its industry sports an average Forward P/E of 14.97, so we one might conclude that Nike is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.7. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Nike (NKE) Stock Sinks As Market Gains: What You Should Know
Nike (NKE - Free Report) closed at $143.53 in the latest trading session, marking a -1.11% move from the prior day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.
Prior to today's trading, shares of the athletic apparel maker had lost 3.52% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.46% and the S&P 500's loss of 4.03% in that time.
Nike will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nike to post earnings of $0.72 per share. This would mark a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $47.13 billion. These totals would mark changes of +3.65% and +5.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.18% higher within the past month. Nike currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 39.31 right now. Its industry sports an average Forward P/E of 14.97, so we one might conclude that Nike is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.7. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.