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Nike (NKE) Gains As Market Dips: What You Should Know
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Nike (NKE - Free Report) closed at $141.59 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the athletic apparel maker had lost 5.4% in the past month. In that same time, the Consumer Discretionary sector lost 5.67%, while the S&P 500 lost 6.25%.
Investors will be hoping for strength from Nike as it approaches its next earnings release. The company is expected to report EPS of $0.72, down 20% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.61 billion, up 2.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.69 per share and revenue of $47.13 billion, which would represent changes of +3.65% and +5.83%, respectively, from the prior 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.
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, 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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Nike currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.97. This represents a premium compared to its industry's average Forward P/E of 15.58.
It is also worth noting that NKE currently has a PEG ratio of 2.6. 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 0.97 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 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE - Free Report) closed at $141.59 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the athletic apparel maker had lost 5.4% in the past month. In that same time, the Consumer Discretionary sector lost 5.67%, while the S&P 500 lost 6.25%.
Investors will be hoping for strength from Nike as it approaches its next earnings release. The company is expected to report EPS of $0.72, down 20% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.61 billion, up 2.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.69 per share and revenue of $47.13 billion, which would represent changes of +3.65% and +5.83%, respectively, from the prior 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.
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, 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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Nike currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.97. This represents a premium compared to its industry's average Forward P/E of 15.58.
It is also worth noting that NKE currently has a PEG ratio of 2.6. 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 0.97 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 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.