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Nike (NKE) Gains But Lags Market: What You Should Know
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Nike (NKE - Free Report) closed the most recent trading day at $148.71, moving +0.33% from the previous trading session. This change lagged the S&P 500's 0.94% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the athletic apparel maker had lost 10.92% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.37% and the S&P 500's loss of 4.63% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. On that day, Nike is projected to report earnings of $0.72 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $47.13 billion. These totals would mark changes of +3.65% and +5.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.18% higher. Nike is currently a Zacks Rank #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 40.15. For comparison, its industry has an average Forward P/E of 14.42, which means Nike is trading at a premium to the group.
Also, we should mention that NKE has a PEG ratio of 2.75. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 0.96 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE - Free Report) closed the most recent trading day at $148.71, moving +0.33% from the previous trading session. This change lagged the S&P 500's 0.94% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the athletic apparel maker had lost 10.92% over the past month. This has lagged the Consumer Discretionary sector's loss of 7.37% and the S&P 500's loss of 4.63% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. On that day, Nike is projected to report earnings of $0.72 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $47.13 billion. These totals would mark changes of +3.65% and +5.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nike. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.18% higher. Nike is currently a Zacks Rank #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 40.15. For comparison, its industry has an average Forward P/E of 14.42, which means Nike is trading at a premium to the group.
Also, we should mention that NKE has a PEG ratio of 2.75. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 0.96 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.