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Nike (NKE - Free Report) ended the recent trading session at $83.23, demonstrating a +0.88% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.2% for the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.21%.
Coming into today, shares of the athletic apparel maker had gained 13.98% in the past month. In that same time, the Consumer Discretionary sector lost 1.29%, while the S&P 500 lost 1.49%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.54, reflecting a 42.55% decrease from the same quarter last 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and a revenue of $48.82 billion, representing changes of -21.01% and -4.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nike currently has a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 26.46. This denotes a premium relative to the industry's average Forward P/E of 15.2.
One should further note that NKE currently holds a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel was holding an average PEG ratio of 1.96 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 60, putting it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Nike (NKE) Laps the Stock Market: Here's Why
Nike (NKE - Free Report) ended the recent trading session at $83.23, demonstrating a +0.88% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.2% for the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.21%.
Coming into today, shares of the athletic apparel maker had gained 13.98% in the past month. In that same time, the Consumer Discretionary sector lost 1.29%, while the S&P 500 lost 1.49%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.54, reflecting a 42.55% decrease from the same quarter last 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and a revenue of $48.82 billion, representing changes of -21.01% and -4.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nike currently has a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 26.46. This denotes a premium relative to the industry's average Forward P/E of 15.2.
One should further note that NKE currently holds a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel was holding an average PEG ratio of 1.96 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 60, putting it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.