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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
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Nike (NKE - Free Report) closed at $79.13 in the latest trading session, marking a +1.87% move from the prior day. This move outpaced the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.71%.
Heading into today, shares of the athletic apparel maker had gained 12.63% over the past month, outpacing the Consumer Discretionary sector's gain of 2.63% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be March 28, 2019. In that report, analysts expect NKE to post earnings of $0.63 per share. This would mark a year-over-year decline of 7.35%. Our most recent consensus estimate is calling for quarterly revenue of $9.49 billion, up 5.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $39.11 billion. These totals would mark changes of +8.26% and +7.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. NKE currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NKE currently has a Forward P/E ratio of 29.61. Its industry sports an average Forward P/E of 14, 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 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NKE's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE - Free Report) closed at $79.13 in the latest trading session, marking a +1.87% move from the prior day. This move outpaced the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.71%.
Heading into today, shares of the athletic apparel maker had gained 12.63% over the past month, outpacing the Consumer Discretionary sector's gain of 2.63% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be March 28, 2019. In that report, analysts expect NKE to post earnings of $0.63 per share. This would mark a year-over-year decline of 7.35%. Our most recent consensus estimate is calling for quarterly revenue of $9.49 billion, up 5.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $39.11 billion. These totals would mark changes of +8.26% and +7.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. NKE currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NKE currently has a Forward P/E ratio of 29.61. Its industry sports an average Forward P/E of 14, 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 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NKE's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.