Back to top

Image: Bigstock

Nike (NKE) Stock Moves -0.22%: What You Should Know

Read MoreHide Full Article

Nike (NKE - Free Report) closed the most recent trading day at $120.39, moving -0.22% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 3.27%.

Prior to today's trading, shares of the athletic apparel maker had lost 3% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 7.53% and the S&P 500's loss of 3.02% 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. In that report, analysts expect Nike to post earnings of $0.51 per share. This would mark a year-over-year decline of 41.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.37 billion, up 4.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $50 billion, which would represent changes of -16.27% and +7.04%, respectively, from the prior 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% higher. Nike is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Nike is currently trading at a Forward P/E ratio of 38.44. Its industry sports an average Forward P/E of 14.68, so we one might conclude that Nike is trading at a premium comparatively.

Also, we should mention that NKE has a PEG ratio of 3.86. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.55 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 174, putting it in the bottom 31% 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.

To follow NKE in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

NIKE, Inc. (NKE) - free report >>

Published in