In the latest trading session, Nike (NKE) closed at $119.83, marking a -0.32% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.74%.
Heading into today, shares of the athletic apparel maker had lost 4.56% over the past month, lagging the Consumer Discretionary sector's loss of 1.26% and the S&P 500's gain of 0.85% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release. The company is expected to report EPS of $0.66, down 26.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.56 billion, up 2.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.24 per share and revenue of $50.95 billion, which would represent changes of -13.6% and +9.08%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 37.1. This valuation marks a premium compared to its industry's average Forward P/E of 13.25.
Meanwhile, NKE's PEG ratio is currently 3.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NKE's industry had an average PEG ratio of 2.38 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 62, putting it in the top 25% 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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