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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 $116.86 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the athletic apparel maker had lost 3.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.8% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be March 21, 2023. On that day, Nike is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 41.38%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $49.94 billion, which would represent changes of -16.53% and +6.92%, respectively, from the prior year.
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. 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. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. Nike is currently a Zacks Rank #2 (Buy).
Digging into valuation, Nike currently has a Forward P/E ratio of 37.57. Its industry sports an average Forward P/E of 14.25, so we one might conclude that Nike is trading at a premium comparatively.
Also, we should mention that NKE has a PEG ratio of 3.92. 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 2.58 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 194, putting it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Nike (NKE) Dips More Than Broader Markets: What You Should Know
Nike (NKE - Free Report) closed at $116.86 in the latest trading session, marking a -0.54% move from the prior day. This move lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Prior to today's trading, shares of the athletic apparel maker had lost 3.88% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 6.8% and the S&P 500's loss of 5.39% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be March 21, 2023. On that day, Nike is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 41.38%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, up 4.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $49.94 billion, which would represent changes of -16.53% and +6.92%, respectively, from the prior year.
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. 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. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. Nike is currently a Zacks Rank #2 (Buy).
Digging into valuation, Nike currently has a Forward P/E ratio of 37.57. Its industry sports an average Forward P/E of 14.25, so we one might conclude that Nike is trading at a premium comparatively.
Also, we should mention that NKE has a PEG ratio of 3.92. 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 2.58 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 194, putting it in the bottom 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.