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Nike (NKE) Increases Yet Falls Behind Market: What Investors Need to Know
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The most recent trading session ended with Nike (NKE - Free Report) standing at $101.76, reflecting a +0.23% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.25% for the day. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.
The athletic apparel maker's stock has dropped by 2.41% in the past month, falling short of the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 1.58%.
The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company's upcoming EPS is projected at $0.72, signifying an 8.86% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.35 billion, indicating a 0.34% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.57 per share and a revenue of $51.77 billion, indicating changes of +10.53% and +1.07%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Nike currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 28.45. This expresses a premium compared to the average Forward P/E of 12.17 of its industry.
Investors should also note that NKE has a PEG ratio of 1.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Increases Yet Falls Behind Market: What Investors Need to Know
The most recent trading session ended with Nike (NKE - Free Report) standing at $101.76, reflecting a +0.23% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.25% for the day. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.
The athletic apparel maker's stock has dropped by 2.41% in the past month, falling short of the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 1.58%.
The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company's upcoming EPS is projected at $0.72, signifying an 8.86% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.35 billion, indicating a 0.34% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.57 per share and a revenue of $51.77 billion, indicating changes of +10.53% and +1.07%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Nike currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 28.45. This expresses a premium compared to the average Forward P/E of 12.17 of its industry.
Investors should also note that NKE has a PEG ratio of 1.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.