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Nike (NKE) Stock Sinks As Market Gains: Here's Why
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Nike (NKE - Free Report) ended the recent trading session at $63.09, demonstrating a -2.92% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
Shares of the athletic apparel maker witnessed a gain of 6.18% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 3.34%, and the S&P 500's gain of 0.38%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 42.59% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.31 billion, indicating a 0.33% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.54 per share and revenue of $46.84 billion, indicating changes of -28.7% and +1.15%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Nike should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.61% downward. Currently, Nike is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 42.14. This valuation marks a premium compared to its industry average Forward P/E of 16.88.
We can additionally observe that NKE currently boasts a PEG ratio of 3.38. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Stock Sinks As Market Gains: Here's Why
Nike (NKE - Free Report) ended the recent trading session at $63.09, demonstrating a -2.92% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq added 0.91%.
Shares of the athletic apparel maker witnessed a gain of 6.18% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 3.34%, and the S&P 500's gain of 0.38%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 42.59% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.31 billion, indicating a 0.33% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.54 per share and revenue of $46.84 billion, indicating changes of -28.7% and +1.15%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Nike should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.61% downward. Currently, Nike is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 42.14. This valuation marks a premium compared to its industry average Forward P/E of 16.88.
We can additionally observe that NKE currently boasts a PEG ratio of 3.38. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.