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Nike (NKE) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Nike (NKE - Free Report) closed at $61.10, marking a -2% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 2.04%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.91% lagged the Consumer Discretionary sector's loss of 3.21% and the S&P 500's loss of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.32, showcasing a 40.74% downward movement from the corresponding quarter of the prior year. 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.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $46.83 billion. These results would represent year-over-year changes of -27.31% and +1.12%, respectively.
Investors should also note any recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. Nike presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.83. This indicates a premium in contrast to its industry's Forward P/E of 16.41.
Investors should also note that NKE has a PEG ratio of 3.19 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 34% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Nike (NKE) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Nike (NKE - Free Report) closed at $61.10, marking a -2% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 2.04%.
Prior to today's trading, shares of the athletic apparel maker had lost 4.91% lagged the Consumer Discretionary sector's loss of 3.21% and the S&P 500's loss of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.32, showcasing a 40.74% downward movement from the corresponding quarter of the prior year. 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.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $46.83 billion. These results would represent year-over-year changes of -27.31% and +1.12%, respectively.
Investors should also note any recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. Nike presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 39.83. This indicates a premium in contrast to its industry's Forward P/E of 16.41.
Investors should also note that NKE has a PEG ratio of 3.19 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 34% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.