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Nike (NKE) Ascends While Market Falls: Some Facts to Note
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In the latest market close, Nike (NKE - Free Report) reached $92.72, with a +1.96% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.29%.
The athletic apparel maker's stock has dropped by 1.15% in the past month, exceeding the Consumer Discretionary sector's loss of 1.98% and lagging the S&P 500's gain of 1.29%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 30.3% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.92 billion, indicating a 0.71% upward movement from the same quarter last year.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.73 per share and revenue of $51.66 billion. These results would represent year-over-year changes of +15.48% and +0.86%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nike presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 24.38. This denotes a premium relative to the industry's average Forward P/E of 16.45.
Meanwhile, NKE's PEG ratio is currently 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.68 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Ascends While Market Falls: Some Facts to Note
In the latest market close, Nike (NKE - Free Report) reached $92.72, with a +1.96% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.29%.
The athletic apparel maker's stock has dropped by 1.15% in the past month, exceeding the Consumer Discretionary sector's loss of 1.98% and lagging the S&P 500's gain of 1.29%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 30.3% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.92 billion, indicating a 0.71% upward movement from the same quarter last year.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.73 per share and revenue of $51.66 billion. These results would represent year-over-year changes of +15.48% and +0.86%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Nike presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 24.38. This denotes a premium relative to the industry's average Forward P/E of 16.45.
Meanwhile, NKE's PEG ratio is currently 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.68 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.