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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
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Nike (NKE - Free Report) closed the most recent trading day at $127.41, moving +1.77% from the previous trading session. This change outpaced the S&P 500's 1.24% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.
Heading into today, shares of the athletic apparel maker had lost 14.54% over the past month, lagging the Consumer Discretionary sector's loss of 8.26% and the S&P 500's loss of 2.45% 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 $0.72 per share, which would represent a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue 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 $3.66 per share and revenue of $47.12 billion. These totals would mark changes of +2.81% and +5.79%, respectively, from last year.
Investors should also note any 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 34.19. This represents a premium compared to its industry's average Forward P/E of 13.83.
Investors should also note that NKE has a PEG ratio of 2.42 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 1.15 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 81, which puts it in the top 32% 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) Outpaces Stock Market Gains: What You Should Know
Nike (NKE - Free Report) closed the most recent trading day at $127.41, moving +1.77% from the previous trading session. This change outpaced the S&P 500's 1.24% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.
Heading into today, shares of the athletic apparel maker had lost 14.54% over the past month, lagging the Consumer Discretionary sector's loss of 8.26% and the S&P 500's loss of 2.45% 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 $0.72 per share, which would represent a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue 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 $3.66 per share and revenue of $47.12 billion. These totals would mark changes of +2.81% and +5.79%, respectively, from last year.
Investors should also note any 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 34.19. This represents a premium compared to its industry's average Forward P/E of 13.83.
Investors should also note that NKE has a PEG ratio of 2.42 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 1.15 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 81, which puts it in the top 32% 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.