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Nike (NKE) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Nike (NKE - Free Report) closed at $65.55, marking a +1.13% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.56% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 0.78%.
Prior to today's trading, shares of the athletic apparel maker had gained 1.87% outpaced the Consumer Discretionary sector's loss of 2.26% and the S&P 500's loss of 1.27%.
The upcoming earnings release of Nike will be of great interest to investors. The company's upcoming EPS is projected at $0.32, signifying a 40.74% drop compared to the same quarter of the previous 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 pay attention to any latest changes in analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. At present, Nike boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 41.4 right now. This represents a premium compared to its industry average Forward P/E of 17.07.
We can additionally observe that NKE currently boasts a PEG ratio of 3.32. 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. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 1.56.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Nike (NKE - Free Report) closed at $65.55, marking a +1.13% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.56% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 0.78%.
Prior to today's trading, shares of the athletic apparel maker had gained 1.87% outpaced the Consumer Discretionary sector's loss of 2.26% and the S&P 500's loss of 1.27%.
The upcoming earnings release of Nike will be of great interest to investors. The company's upcoming EPS is projected at $0.32, signifying a 40.74% drop compared to the same quarter of the previous 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 pay attention to any latest changes in analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. At present, Nike boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 41.4 right now. This represents a premium compared to its industry average Forward P/E of 17.07.
We can additionally observe that NKE currently boasts a PEG ratio of 3.32. 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. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 1.56.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.