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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 $169.87, marking a +1.1% move from the previous day. The stock lagged the S&P 500's daily gain of 1.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq lost 0.15%.

Coming into today, shares of the athletic apparel maker had gained 0.44% in the past month. In that same time, the Consumer Discretionary sector lost 4.8%, while the S&P 500 gained 3.61%.

Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be December 20, 2021. In that report, analysts expect Nike to post earnings of $0.62 per share. This would mark a year-over-year decline of 20.51%. Our most recent consensus estimate is calling for quarterly revenue of $11.23 billion, down 0.09% from the year-ago period.

NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.56 per share and revenue of $47.11 billion. These results would represent year-over-year changes of 0% and +5.76%, respectively.

It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nike currently has a Zacks Rank of #4 (Sell).

Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 47.14. Its industry sports an average Forward P/E of 21.84, so we one might conclude that Nike is trading at a premium comparatively.

It is also worth noting that NKE currently has a PEG ratio of 3.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NKE's industry had an average PEG ratio of 1.17 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 245, which puts it in the bottom 4% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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