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Nike (NKE) Gains But Lags Market: What You Should Know

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In the latest trading session, Nike (NKE - Free Report) closed at $134.70, marking a +0.42% move from the previous day. The stock lagged the S&P 500's daily gain of 1.62%. At the same time, the Dow added 1.54%, and the tech-heavy Nasdaq gained 1.31%.

Prior to today's trading, shares of the athletic apparel maker had gained 4.49% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.59% and outpaced the S&P 500's gain of 3.4% in that time.

Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be December 18, 2020. In that report, analysts expect NKE to post earnings of $0.61 per share. This would mark a year-over-year decline of 12.86%. Meanwhile, our latest consensus estimate is calling for revenue of $10.59 billion, up 2.57% from the prior-year quarter.

NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.82 per share and revenue of $42.16 billion. These results would represent year-over-year changes of +76.25% and +12.72%, respectively.

Investors might also notice recent changes to analyst estimates for NKE. These revisions help to show the ever-changing nature of 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. NKE is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, NKE is currently trading at a Forward P/E ratio of 47.5. Its industry sports an average Forward P/E of 40.4, so we one might conclude that NKE is trading at a premium comparatively.

Also, we should mention that NKE has a PEG ratio of 2.85. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 3.33 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 71, which puts it in the top 28% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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