Back to top

Image: Bigstock

Nike (NKE) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Nike (NKE - Free Report) closed at $106.19 in the latest trading session, marking a +0.94% move from the prior day. This change outpaced the S&P 500's 0.24% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.73%.

Prior to today's trading, shares of the athletic apparel maker had lost 17.09% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.05% and the S&P 500's gain of 3.56% in that time.

Investors will be hoping for strength from Nike as it approaches its next earnings release, which is expected to be June 29, 2023. The company is expected to report EPS of $0.66, down 26.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.57 billion, up 2.73% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.48% lower. Nike is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 26.42. Its industry sports an average Forward P/E of 11.7, so we one might conclude that Nike is trading at a premium comparatively.

Investors should also note that NKE has a PEG ratio of 2.48 right now. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.86 at yesterday's closing price.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 111, putting it in the top 45% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

See More Zacks Research for These Tickers

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

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

Published in