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Nike (NKE) Falls More Steeply Than Broader Market: What Investors Need to Know
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Nike (NKE - Free Report) ended the recent trading session at $37.30, demonstrating a -2.66% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.52%. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the athletic apparel maker had gained 6.47% over the past month, outpacing the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is predicted to post an EPS of $0.36, indicating a 32.08% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.22 billion, indicating a 9.71% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.25 per share and a revenue of $42.75 billion, demonstrating changes of -20.89% and -7.86%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has moved 27.02% lower. Nike presently features a Zacks Rank of #5 (Strong Sell).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 30.68. This signifies a premium in comparison to the average Forward P/E of 12.67 for its industry.
Also, we should mention that NKE has a PEG ratio of 4.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Nike (NKE) Falls More Steeply Than Broader Market: What Investors Need to Know
Nike (NKE - Free Report) ended the recent trading session at $37.30, demonstrating a -2.66% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.52%. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 0.21%.
Heading into today, shares of the athletic apparel maker had gained 6.47% over the past month, outpacing the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is predicted to post an EPS of $0.36, indicating a 32.08% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.22 billion, indicating a 9.71% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.25 per share and a revenue of $42.75 billion, demonstrating changes of -20.89% and -7.86%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has moved 27.02% lower. Nike presently features a Zacks Rank of #5 (Strong Sell).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 30.68. This signifies a premium in comparison to the average Forward P/E of 12.67 for its industry.
Also, we should mention that NKE has a PEG ratio of 4.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.