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Nike (NKE) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Nike (NKE - Free Report) closed at $98.55, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the athletic apparel maker had lost 10.43% over the past month, outpacing the Consumer Discretionary sector's loss of 11.36% and lagging the S&P 500's loss of 10.24% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be September 29, 2022. In that report, analysts expect Nike to post earnings of $0.93 per share. This would mark a year-over-year decline of 19.83%. Our most recent consensus estimate is calling for quarterly revenue of $12.33 billion, up 0.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $50.36 billion. These totals would mark changes of +0.8% and +7.81%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.42% lower within the past month. Nike is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 26.38. Its industry sports an average Forward P/E of 13.57, 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 2.11. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nike (NKE - Free Report) closed at $98.55, marking a -1.24% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the athletic apparel maker had lost 10.43% over the past month, outpacing the Consumer Discretionary sector's loss of 11.36% and lagging the S&P 500's loss of 10.24% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be September 29, 2022. In that report, analysts expect Nike to post earnings of $0.93 per share. This would mark a year-over-year decline of 19.83%. Our most recent consensus estimate is calling for quarterly revenue of $12.33 billion, up 0.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.78 per share and revenue of $50.36 billion. These totals would mark changes of +0.8% and +7.81%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.42% lower within the past month. Nike is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 26.38. Its industry sports an average Forward P/E of 13.57, 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 2.11. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.