In the latest trading session, Nike (NKE) closed at $78.86, marking a -0.29% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.05% for the day. Elsewhere, the Dow saw a downswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.4%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.46% over the past month. This has lagged the Consumer Discretionary sector's gain of 9.96% and the S&P 500's gain of 5.75% in that time.
The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company is scheduled to release its earnings on December 19, 2024. The company is expected to report EPS of $0.64, down 37.86% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $12.18 billion, showing a 9.01% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.75 per share and a revenue of $47.48 billion, signifying shifts of -30.38% and -7.95%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Nike is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 28.81 right now. For comparison, its industry has an average Forward P/E of 15.46, which means Nike is trading at a premium to the group.
Meanwhile, NKE's PEG ratio is currently 1.92. 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. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 1.52.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
