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Nike (NKE) Gains As Market Dips: What You Should Know
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Nike (NKE - Free Report) closed at $126.20 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.87% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.1% and the S&P 500's gain of 3.6% in that time.
Nike will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.51, down 41.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $49.98 billion. These totals would mark changes of -17.07% and +6.99%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.22% higher. Nike is currently a Zacks Rank #2 (Buy).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 40.25. This represents a premium compared to its industry's average Forward P/E of 15.18.
Investors should also note that NKE has a PEG ratio of 4.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 4.2 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 101, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE - Free Report) closed at $126.20 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.87% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.1% and the S&P 500's gain of 3.6% in that time.
Nike will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.51, down 41.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $49.98 billion. These totals would mark changes of -17.07% and +6.99%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.22% higher. Nike is currently a Zacks Rank #2 (Buy).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 40.25. This represents a premium compared to its industry's average Forward P/E of 15.18.
Investors should also note that NKE has a PEG ratio of 4.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 4.2 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 101, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.