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Why Nike (NKE) Dipped More Than Broader Market Today
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Nike (NKE - Free Report) closed at $104.20 in the latest trading session, marking a -1.8% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.22%.
Coming into today, shares of the athletic apparel maker had gained 6.21% in the past month. In that same time, the Consumer Discretionary sector gained 2.3%, while the S&P 500 gained 1.42%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying steadiness compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.41 billion, indicating a 0.72% upward movement from the same 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. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. As of now, Nike holds a Zacks Rank of #3 (Hold).
With respect to valuation, Nike is currently being traded at a Forward P/E ratio of 28.35. This denotes a premium relative to the industry's average Forward P/E of 14.51.
One should further note that NKE currently holds a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why Nike (NKE) Dipped More Than Broader Market Today
Nike (NKE - Free Report) closed at $104.20 in the latest trading session, marking a -1.8% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.22%.
Coming into today, shares of the athletic apparel maker had gained 6.21% in the past month. In that same time, the Consumer Discretionary sector gained 2.3%, while the S&P 500 gained 1.42%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.85, signifying steadiness compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.41 billion, indicating a 0.72% upward movement from the same 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. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. As of now, Nike holds a Zacks Rank of #3 (Hold).
With respect to valuation, Nike is currently being traded at a Forward P/E ratio of 28.35. This denotes a premium relative to the industry's average Forward P/E of 14.51.
One should further note that NKE currently holds a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.