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

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Nike (NKE - Free Report) closed at $105.15 in the latest trading session, marking a +0.58% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.17%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.37%.

The athletic apparel maker's shares have seen an increase of 0.64% over the last month, surpassing the Consumer Discretionary sector's loss of 0.2% and falling behind the S&P 500's gain of 3.8%.

The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company is scheduled to release its earnings on March 21, 2024. On that day, Nike is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 11.39%. In the meantime, our current consensus estimate forecasts the revenue to be $12.29 billion, indicating a 0.82% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.57 per share and revenue of $51.75 billion, which would represent changes of +10.53% and +1.04%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Nike presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Nike currently has a Forward P/E ratio of 29.26. For comparison, its industry has an average Forward P/E of 14.4, which means Nike is trading at a premium to the group.

It is also worth noting that NKE currently has a PEG ratio of 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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 Zacks.com.


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