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Nike (NKE) Gains But Lags Market: What You Should Know
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Nike (NKE - Free Report) closed at $93.75 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 0.56% gain on the day. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the athletic apparel maker had gained 7.79% over the past month, outpacing the Consumer Discretionary sector's gain of 5.01% and the S&P 500's gain of 4.72% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 20.48%. Meanwhile, our latest consensus estimate is calling for revenue of $12.58 billion, up 10.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.97 billion, which would represent changes of -20.8% and +4.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 5.41% lower. Nike is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 31.45. This represents a premium compared to its industry's average Forward P/E of 15.91.
We can also see that NKE currently has a PEG ratio of 3.1. 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 3.1 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE - Free Report) closed at $93.75 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 0.56% gain on the day. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the athletic apparel maker had gained 7.79% over the past month, outpacing the Consumer Discretionary sector's gain of 5.01% and the S&P 500's gain of 4.72% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 20.48%. Meanwhile, our latest consensus estimate is calling for revenue of $12.58 billion, up 10.76% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.97 billion, which would represent changes of -20.8% and +4.84%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 5.41% lower. Nike is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 31.45. This represents a premium compared to its industry's average Forward P/E of 15.91.
We can also see that NKE currently has a PEG ratio of 3.1. 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 3.1 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.