The most recent trading session ended with Nike (NKE) standing at $76.78, reflecting a -1.04% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.24%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.08%.
The athletic apparel maker's shares have seen an increase of 6.04% over the last month, not keeping up with the Consumer Discretionary sector's gain of 8.73% and outstripping the S&P 500's gain of 2.37%.
The upcoming earnings release of Nike will be of great interest to investors. It is anticipated that the company will report an EPS of $0.28, marking a 71.43% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.15 billion, reflecting a 10.31% fall from the equivalent quarter last year.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $46.32 billion. These results would represent year-over-year changes of -48.1% and -9.81%, respectively.
Investors might also notice recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, 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 2.48% lower. Nike presently features a Zacks Rank of #4 (Sell).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 37.91. This valuation marks a premium compared to its industry's average Forward P/E of 14.13.
We can additionally observe that NKE currently boasts a PEG ratio of 2.53. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 19% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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