Nike (NKE - Free Report) closed at $127.26 in the latest trading session, marking a -0.52% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 7.95%.
Prior to today's trading, shares of the athletic apparel maker had gained 5.14% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.99% and the S&P 500's gain of 1.53% 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 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $12.56 billion, up 2.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $50.95 billion. These totals would mark changes of -13.6% and +9.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Nike is currently a Zacks Rank #2 (Buy).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.47. This represents a premium compared to its industry's average Forward P/E of 13.85.
Also, we should mention that NKE has a PEG ratio of 3.73. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.49 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 79, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 - Free Report) closed at $127.26 in the latest trading session, marking a -0.52% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 7.95%.
Prior to today's trading, shares of the athletic apparel maker had gained 5.14% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.99% and the S&P 500's gain of 1.53% 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 26.67%. Meanwhile, our latest consensus estimate is calling for revenue of $12.56 billion, up 2.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $50.95 billion. These totals would mark changes of -13.6% and +9.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Nike is currently a Zacks Rank #2 (Buy).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.47. This represents a premium compared to its industry's average Forward P/E of 13.85.
Also, we should mention that NKE has a PEG ratio of 3.73. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.49 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 79, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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