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Nike (NKE) Gains But Lags Market: What You Should Know
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Nike (NKE - Free Report) closed the most recent trading day at $106.83, moving +0.92% from the previous trading session. This change lagged the S&P 500's 0.93% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.
Prior to today's trading, shares of the athletic apparel maker had lost 11.94% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.39% and the S&P 500's gain of 4.61% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be June 29, 2023. In that report, analysts expect Nike to post earnings of $0.66 per share. This would mark a year-over-year decline of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.57 billion, up 2.73% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.48% lower. Nike currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 26.58 right now. Its industry sports an average Forward P/E of 12.35, so we one might conclude that Nike is trading at a premium comparatively.
We can also see that NKE currently has a PEG ratio of 2.5. 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 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 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE - Free Report) closed the most recent trading day at $106.83, moving +0.92% from the previous trading session. This change lagged the S&P 500's 0.93% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.
Prior to today's trading, shares of the athletic apparel maker had lost 11.94% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.39% and the S&P 500's gain of 4.61% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be June 29, 2023. In that report, analysts expect Nike to post earnings of $0.66 per share. This would mark a year-over-year decline of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.57 billion, up 2.73% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.48% lower. Nike currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 26.58 right now. Its industry sports an average Forward P/E of 12.35, so we one might conclude that Nike is trading at a premium comparatively.
We can also see that NKE currently has a PEG ratio of 2.5. 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 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 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.