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Nike (NKE) Gains As Market Dips: What You Should Know
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Nike (NKE - Free Report) closed at $101.08 in the latest trading session, marking a +1.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.41%.
The athletic apparel maker's stock has dropped by 5.11% in the past month, falling short of the Consumer Discretionary sector's gain of 0.38% and the S&P 500's gain of 2.7%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on March 21, 2024. The company is expected to report EPS of $0.70, down 11.39% from the prior-year quarter. 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 project earnings of $3.57 per share and a revenue of $51.75 billion, demonstrating changes of +10.53% and +1.04%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.12% higher. Right now, Nike possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 27.75 right now. Its industry sports an average Forward P/E of 14.77, so one might conclude that Nike is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 222, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE - Free Report) closed at $101.08 in the latest trading session, marking a +1.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.41%.
The athletic apparel maker's stock has dropped by 5.11% in the past month, falling short of the Consumer Discretionary sector's gain of 0.38% and the S&P 500's gain of 2.7%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on March 21, 2024. The company is expected to report EPS of $0.70, down 11.39% from the prior-year quarter. 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 project earnings of $3.57 per share and a revenue of $51.75 billion, demonstrating changes of +10.53% and +1.04%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.12% higher. Right now, Nike possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 27.75 right now. Its industry sports an average Forward P/E of 14.77, so one might conclude that Nike is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 222, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.