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Nike (NKE) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Nike (NKE - Free Report) closed at $45.98, marking a +2.31% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.07%.
Coming into today, shares of the athletic apparel maker had lost 0.2% in the past month. In that same time, the Consumer Discretionary sector lost 1.86%, while the S&P 500 gained 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.14, reflecting no change from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.87 billion, indicating a 2.03% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.51 per share and a revenue of $46.36 billion, representing changes of -30.09% and +0.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Right now, Nike possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Nike is currently being traded at a Forward P/E ratio of 29.75. This valuation marks a premium compared to its industry average Forward P/E of 16.76.
It's also important to note that NKE currently trades at a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Nike (NKE) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Nike (NKE - Free Report) closed at $45.98, marking a +2.31% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.07%.
Coming into today, shares of the athletic apparel maker had lost 0.2% in the past month. In that same time, the Consumer Discretionary sector lost 1.86%, while the S&P 500 gained 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.14, reflecting no change from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.87 billion, indicating a 2.03% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.51 per share and a revenue of $46.36 billion, representing changes of -30.09% and +0.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Right now, Nike possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Nike is currently being traded at a Forward P/E ratio of 29.75. This valuation marks a premium compared to its industry average Forward P/E of 16.76.
It's also important to note that NKE currently trades at a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.