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Nike (NKE) Rises Higher Than Market: Key Facts

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Nike (NKE - Free Report) closed the latest trading day at $92, indicating a +0.27% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.03% for the day. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.59%.

The athletic apparel maker's stock has dropped by 2.46% in the past month, falling short of the Consumer Discretionary sector's gain of 0.91% and the S&P 500's gain of 4.19%.

Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.86, indicating a 30.3% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.92 billion, up 0.71% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.73 per share and revenue of $51.66 billion, indicating changes of +15.48% and +0.86%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. As of now, Nike holds a Zacks Rank of #3 (Hold).

Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 24.6. This indicates a premium in contrast to its industry's Forward P/E of 16.4.

Meanwhile, NKE's PEG ratio is currently 1.77. 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. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.66.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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