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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 $119.96, marking a +0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.2%.
Heading into today, shares of the athletic apparel maker had lost 5.46% over the past month, lagging the Consumer Discretionary sector's gain of 0.11% and the S&P 500's gain of 0.67% in that time.
Nike will be looking to display strength as it nears its next earnings release, which is expected to be March 21, 2023. On that day, Nike is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 42.53%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.12 per share and revenue of $49.94 billion. These totals would mark changes of -16.8% and +6.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.42% higher. Nike currently has a Zacks Rank of #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 38.43. Its industry sports an average Forward P/E of 13.87, so we one might conclude that Nike is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 4.01. 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. NKE's industry had an average PEG ratio of 2.61 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 197, putting it in the bottom 22% 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
In the latest trading session, Nike (NKE - Free Report) closed at $119.96, marking a +0.05% move from the previous day. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.2%.
Heading into today, shares of the athletic apparel maker had lost 5.46% over the past month, lagging the Consumer Discretionary sector's gain of 0.11% and the S&P 500's gain of 0.67% in that time.
Nike will be looking to display strength as it nears its next earnings release, which is expected to be March 21, 2023. On that day, Nike is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 42.53%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.12 per share and revenue of $49.94 billion. These totals would mark changes of -16.8% and +6.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.42% higher. Nike currently has a Zacks Rank of #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 38.43. Its industry sports an average Forward P/E of 13.87, so we one might conclude that Nike is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 4.01. 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. NKE's industry had an average PEG ratio of 2.61 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 197, putting it in the bottom 22% 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.