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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 $119.90, moving -0.99% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.52% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.25% and the S&P 500's gain of 0.84% 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, 2023. On that day, Nike is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 42.53%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $49.94 billion, which would represent changes of -16.8% and +6.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. Nike is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 38.81 right now. For comparison, its industry has an average Forward P/E of 13.84, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 4.05 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 2.62 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 197, putting it in the bottom 22% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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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 $119.90, moving -0.99% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.58%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.52% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.25% and the S&P 500's gain of 0.84% 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, 2023. On that day, Nike is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 42.53%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $49.94 billion, which would represent changes of -16.8% and +6.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.56% higher. Nike is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 38.81 right now. For comparison, its industry has an average Forward P/E of 13.84, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 4.05 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 2.62 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 197, putting it in the bottom 22% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.