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Nike (NKE) Exceeds Market Returns: Some Facts to Consider
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The most recent trading session ended with Nike (NKE - Free Report) standing at $106.33, reflecting a +1.27% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Coming into today, shares of the athletic apparel maker had gained 3.22% in the past month. In that same time, the Consumer Discretionary sector gained 2.64%, while the S&P 500 gained 3.69%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company is forecasted to report an EPS of $0.72, showcasing an 8.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.35 billion, down 0.34% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.57 per share and revenue of $51.77 billion, indicating changes of +10.53% and +1.07%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 29.42. Its industry sports an average Forward P/E of 13.62, so one might conclude that Nike is trading at a premium comparatively.
It's also important to note that NKE currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NKE's industry had an average PEG ratio of 1.87 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 161, putting it in the bottom 37% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Nike (NKE - Free Report) standing at $106.33, reflecting a +1.27% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Coming into today, shares of the athletic apparel maker had gained 3.22% in the past month. In that same time, the Consumer Discretionary sector gained 2.64%, while the S&P 500 gained 3.69%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company is forecasted to report an EPS of $0.72, showcasing an 8.86% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.35 billion, down 0.34% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.57 per share and revenue of $51.77 billion, indicating changes of +10.53% and +1.07%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 29.42. Its industry sports an average Forward P/E of 13.62, so one might conclude that Nike is trading at a premium comparatively.
It's also important to note that NKE currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NKE's industry had an average PEG ratio of 1.87 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 161, putting it in the bottom 37% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.