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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
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Nike (NKE - Free Report) closed at $96.43 in the latest trading session, marking a +1.32% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1.9%, and the tech-heavy Nasdaq gained 1.01%.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be June 25, 2020. The company is expected to report EPS of $0.19, down 69.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.35 billion, down 18.01% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for NKE. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. NKE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 35.49 right now. For comparison, its industry has an average Forward P/E of 27.91, which means NKE is trading at a premium to the group.
It is also worth noting that NKE currently has a PEG ratio of 2.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.63 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 6% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE - Free Report) closed at $96.43 in the latest trading session, marking a +1.32% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1.9%, and the tech-heavy Nasdaq gained 1.01%.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be June 25, 2020. The company is expected to report EPS of $0.19, down 69.35% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.35 billion, down 18.01% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for NKE. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.06% lower. NKE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 35.49 right now. For comparison, its industry has an average Forward P/E of 27.91, which means NKE is trading at a premium to the group.
It is also worth noting that NKE currently has a PEG ratio of 2.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.63 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 6% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.