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Nike (NKE) Dips More Than Broader Market: What You Should Know
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Nike (NKE - Free Report) closed at $61.81 in the latest trading session, marking a -1.26% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.94%.
The stock of athletic apparel maker has fallen by 1.74% in the past month, leading the Consumer Discretionary sector's loss of 3.62% and undershooting the S&P 500's gain of 0.89%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. In that report, analysts expect Nike to post earnings of $0.32 per share. This would mark a year-over-year decline of 40.74%. Alongside, our most recent consensus estimate is anticipating revenue of $11.29 billion, indicating a 0.17% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $46.83 billion, indicating changes of -27.31% and +1.12%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.9% upward. Nike is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.98. This denotes a premium relative to the industry average Forward P/E of 16.14.
Meanwhile, NKE's PEG ratio is currently 3.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Nike (NKE) Dips More Than Broader Market: What You Should Know
Nike (NKE - Free Report) closed at $61.81 in the latest trading session, marking a -1.26% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.94%.
The stock of athletic apparel maker has fallen by 1.74% in the past month, leading the Consumer Discretionary sector's loss of 3.62% and undershooting the S&P 500's gain of 0.89%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. In that report, analysts expect Nike to post earnings of $0.32 per share. This would mark a year-over-year decline of 40.74%. Alongside, our most recent consensus estimate is anticipating revenue of $11.29 billion, indicating a 0.17% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $46.83 billion, indicating changes of -27.31% and +1.12%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.9% upward. Nike is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.98. This denotes a premium relative to the industry average Forward P/E of 16.14.
Meanwhile, NKE's PEG ratio is currently 3.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.