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Nike (NKE) Stock Moves 0.18%: What You Should Know

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In the latest market close, Nike (NKE - Free Report) reached $107.25, with a +0.18% movement compared to the previous day. The stock performed on par with S&P 500. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.3%.

Coming into today, shares of the athletic apparel maker had gained 10.25% in the past month. In that same time, the Consumer Discretionary sector gained 6.27%, while the S&P 500 gained 3.08%.

Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.85, reflecting no change from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $13.41 billion, reflecting a 0.72% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.74 per share and a revenue of $53.14 billion, demonstrating changes of +15.79% and +3.75%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Right now, Nike possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 28.6. This represents a premium compared to its industry's average Forward P/E of 13.92.

It's also important to note that NKE currently trades at a PEG ratio of 1.78. 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. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.15.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 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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