We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Nike (NKE - Free Report) closed at $74.32 in the latest trading session, marking a +1.02% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.17% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.65% and the S&P 500's loss of 4.97% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be December 20, 2018. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.16 billion, up 7.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $39.04 billion, which would represent changes of +8.68% and +7.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NKE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. NKE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 28.02 right now. Its industry sports an average Forward P/E of 14.64, so we one might conclude that NKE is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.3. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE - Free Report) closed at $74.32 in the latest trading session, marking a +1.02% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.17% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 4.65% and the S&P 500's loss of 4.97% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be December 20, 2018. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.16 billion, up 7.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $39.04 billion, which would represent changes of +8.68% and +7.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NKE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. NKE is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 28.02 right now. Its industry sports an average Forward P/E of 14.64, so we one might conclude that NKE is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.3. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.