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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 $126.03, moving -0.72% from the previous trading session. This change lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.62%.
Heading into today, shares of the athletic apparel maker had lost 13.2% over the past month, lagging the Consumer Discretionary sector's loss of 11.04% and the S&P 500's loss of 6.57% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be March 21, 2022. On that day, Nike is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 18.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.49% 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 $47.12 billion. These totals would mark changes of +3.65% and +5.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.08% lower within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 34.41. For comparison, its industry has an average Forward P/E of 13.43, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 2.36 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.02 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $126.03, moving -0.72% from the previous trading session. This change lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.62%.
Heading into today, shares of the athletic apparel maker had lost 13.2% over the past month, lagging the Consumer Discretionary sector's loss of 11.04% and the S&P 500's loss of 6.57% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be March 21, 2022. On that day, Nike is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 18.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.49% 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 $47.12 billion. These totals would mark changes of +3.65% and +5.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.08% lower within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 34.41. For comparison, its industry has an average Forward P/E of 13.43, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 2.36 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.02 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.