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Nike (NKE) Increases Yet Falls Behind Market: What Investors Need to Know
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Nike (NKE - Free Report) closed the latest trading day at $74.34, indicating a +0.2% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.51%.
Heading into today, shares of the athletic apparel maker had gained 1.09% over the past month, outpacing the Consumer Discretionary sector's loss of 2.38% and the S&P 500's loss of 4.45% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.54, marking a 42.55% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $11.71 billion, indicating a 9.53% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.12 per share and a revenue of $48.82 billion, demonstrating changes of -21.01% and -4.94%, respectively, from the preceding 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.54% decrease. Nike presently features a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 23.8. This valuation marks a premium compared to its industry's average Forward P/E of 15.
We can also see that NKE currently has a PEG ratio of 1.93. 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 was holding an average PEG ratio of 1.78 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Nike (NKE) Increases Yet Falls Behind Market: What Investors Need to Know
Nike (NKE - Free Report) closed the latest trading day at $74.34, indicating a +0.2% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.51%.
Heading into today, shares of the athletic apparel maker had gained 1.09% over the past month, outpacing the Consumer Discretionary sector's loss of 2.38% and the S&P 500's loss of 4.45% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.54, marking a 42.55% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $11.71 billion, indicating a 9.53% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.12 per share and a revenue of $48.82 billion, demonstrating changes of -21.01% and -4.94%, respectively, from the preceding 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.54% decrease. Nike presently features a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 23.8. This valuation marks a premium compared to its industry's average Forward P/E of 15.
We can also see that NKE currently has a PEG ratio of 1.93. 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 was holding an average PEG ratio of 1.78 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.