In the latest trading session, Nike (NKE - Free Report) closed at $111.89, marking a -0.36% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.78%, and the Nasdaq, a tech-heavy index, added 0.68%.
Coming into today, shares of the athletic apparel maker had gained 15.98% in the past month. In that same time, the Consumer Discretionary sector gained 10.06%, while the S&P 500 gained 9.15%.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be September 22, 2020. In that report, analysts expect NKE to post earnings of $0.41 per share. This would mark a year-over-year decline of 52.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.05 billion, down 15.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.30 per share and revenue of $39.38 billion. These totals would mark changes of +43.75% and +5.28%, respectively, from last year.
Any recent changes to analyst estimates for NKE should also be noted by investors. 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.
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.
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 2.1% higher within the past month. NKE is currently a Zacks Rank #3 (Hold).
Looking at its valuation, NKE is holding a Forward P/E ratio of 48.88. For comparison, its industry has an average Forward P/E of 30.95, which means NKE is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 2.99 right now. 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. NKE's industry had an average PEG ratio of 3.33 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.