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Nike (NKE) Dips More Than Broader Markets: What You Should Know

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Nike (NKE - Free Report) closed at $132.96 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's 0.29% loss on the day.

Heading into today, shares of the athletic apparel maker had gained 6.65% over the past month, outpacing the Consumer Discretionary sector's loss of 3.43% and the S&P 500's loss of 1.27% in that time.

Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. In that report, analysts expect NKE to post earnings of $0.50 per share. This would mark year-over-year growth of 198.04%. Meanwhile, our latest consensus estimate is calling for revenue of $11.09 billion, up 75.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $43.25 billion, which would represent changes of +95.63% and +15.63%, respectively, from the prior 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. NKE currently has a Zacks Rank of #3 (Hold).

In terms of valuation, NKE is currently trading at a Forward P/E ratio of 43.36. This represents a premium compared to its industry's average Forward P/E of 21.95.

It is also worth noting that NKE currently has a PEG ratio of 2.07. 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 1.38 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 108, putting it in the top 43% 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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