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Nike (NKE) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Nike (NKE - Free Report) closed at $108.09, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the athletic apparel maker had gained 1.1% over the past month, lagging the Consumer Discretionary sector's gain of 2.46% and the S&P 500's gain of 1.43% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 21.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.98 billion, up 2.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.72 per share and revenue of $53.69 billion, which would represent changes of +15.17% and +4.83%, respectively, from the prior year.
It is also important to note the 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Nike is currently a Zacks Rank #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 29.31. For comparison, its industry has an average Forward P/E of 14.17, which means Nike is trading at a premium to the group.
We can also see that NKE currently has a PEG ratio of 1.93. 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. NKE's industry had an average PEG ratio of 1.42 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 170, putting it in the bottom 33% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Nike (NKE - Free Report) closed at $108.09, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the athletic apparel maker had gained 1.1% over the past month, lagging the Consumer Discretionary sector's gain of 2.46% and the S&P 500's gain of 1.43% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 21.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.98 billion, up 2.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.72 per share and revenue of $53.69 billion, which would represent changes of +15.17% and +4.83%, respectively, from the prior year.
It is also important to note the 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Nike is currently a Zacks Rank #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 29.31. For comparison, its industry has an average Forward P/E of 14.17, which means Nike is trading at a premium to the group.
We can also see that NKE currently has a PEG ratio of 1.93. 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. NKE's industry had an average PEG ratio of 1.42 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 170, putting it in the bottom 33% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.