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Nike (NKE) Gains But Lags Market: What You Should Know

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Nike (NKE - Free Report) closed the most recent trading day at $77.81, moving +0.63% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 1.46%.

Shares of the athletic apparel maker have appreciated by 0.78% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.8% and the S&P 500's loss of 4.13%.

The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is slated to reveal its earnings on March 20, 2025. The company is expected to report EPS of $0.28, down 71.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.12 billion, indicating a 10.57% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and a revenue of $46.24 billion, representing changes of -48.1% and -9.98%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Nike is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.66. This represents a premium compared to its industry's average Forward P/E of 12.67.

It is also worth noting that NKE currently has a PEG ratio of 2.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 0.98.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 216, placing it within the bottom 14% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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