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Nike (NKE) Gains But Lags Market: What You Should Know
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Nike (NKE - Free Report) closed at $112.85 in the latest trading session, marking a +0.7% move from the prior day. The stock lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the athletic apparel maker had gained 7.36% in the past month. In that same time, the Consumer Discretionary sector gained 1.28%, while the S&P 500 gained 0.09%.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be December 20, 2022. The company is expected to report EPS of $0.66, down 20.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.58 billion, up 10.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.97 billion, which would represent changes of -20.8% and +4.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Nike currently has a Forward P/E ratio of 37.73. Its industry sports an average Forward P/E of 18.8, 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 3.72. 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 3.72 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 225, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE - Free Report) closed at $112.85 in the latest trading session, marking a +0.7% move from the prior day. The stock lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the athletic apparel maker had gained 7.36% in the past month. In that same time, the Consumer Discretionary sector gained 1.28%, while the S&P 500 gained 0.09%.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be December 20, 2022. The company is expected to report EPS of $0.66, down 20.48% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.58 billion, up 10.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.97 billion, which would represent changes of -20.8% and +4.84%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Nike currently has a Forward P/E ratio of 37.73. Its industry sports an average Forward P/E of 18.8, 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 3.72. 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 3.72 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 225, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.