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Nike (NKE) Exceeds Market Returns: Some Facts to Consider
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Nike (NKE - Free Report) closed at $103.79 in the latest trading session, marking a +1.15% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.82%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.95%.
The athletic apparel maker's shares have seen a decrease of 0.13% over the last month, not keeping up with the Consumer Discretionary sector's gain of 3.13% and the S&P 500's gain of 5.59%.
The upcoming earnings release of Nike will be of great interest to investors. It is anticipated that the company will report an EPS of $0.72, marking an 8.86% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.35 billion, showing a 0.34% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.57 per share and a revenue of $51.77 billion, demonstrating changes of +10.53% and +1.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. As of now, Nike holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 28.75. This indicates a premium in contrast to its industry's Forward P/E of 12.81.
We can additionally observe that NKE currently boasts a PEG ratio of 1.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.81 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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) Exceeds Market Returns: Some Facts to Consider
Nike (NKE - Free Report) closed at $103.79 in the latest trading session, marking a +1.15% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.82%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.95%.
The athletic apparel maker's shares have seen a decrease of 0.13% over the last month, not keeping up with the Consumer Discretionary sector's gain of 3.13% and the S&P 500's gain of 5.59%.
The upcoming earnings release of Nike will be of great interest to investors. It is anticipated that the company will report an EPS of $0.72, marking an 8.86% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.35 billion, showing a 0.34% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.57 per share and a revenue of $51.77 billion, demonstrating changes of +10.53% and +1.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. As of now, Nike holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 28.75. This indicates a premium in contrast to its industry's Forward P/E of 12.81.
We can additionally observe that NKE currently boasts a PEG ratio of 1.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Shoes and Retail Apparel industry stood at 1.81 at the close of the market yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.