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Nike (NKE) Declines More Than Market: Some Information for Investors
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Nike (NKE - Free Report) ended the recent trading session at $38.68, demonstrating a -3.01% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq depreciated by 0.74%.
The athletic apparel maker's stock has climbed by 12.81% in the past month, exceeding the Consumer Discretionary sector's gain of 7.06% and the S&P 500's loss of 3.31%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. In that report, analysts expect Nike to post earnings of $0.34 per share. This would mark a year-over-year decline of 35.85%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.12 billion, indicating a 10.55% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.22 per share and revenue of $42.71 billion. These totals would mark changes of -22.78% and -7.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 3.42% decrease. Right now, Nike possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 32.72. This valuation marks a premium compared to its industry average Forward P/E of 14.56.
Also, we should mention that NKE has a PEG ratio of 4.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 1.49.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 12% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Nike (NKE) Declines More Than Market: Some Information for Investors
Nike (NKE - Free Report) ended the recent trading session at $38.68, demonstrating a -3.01% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq depreciated by 0.74%.
The athletic apparel maker's stock has climbed by 12.81% in the past month, exceeding the Consumer Discretionary sector's gain of 7.06% and the S&P 500's loss of 3.31%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. In that report, analysts expect Nike to post earnings of $0.34 per share. This would mark a year-over-year decline of 35.85%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.12 billion, indicating a 10.55% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.22 per share and revenue of $42.71 billion. These totals would mark changes of -22.78% and -7.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 3.42% decrease. Right now, Nike possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 32.72. This valuation marks a premium compared to its industry average Forward P/E of 14.56.
Also, we should mention that NKE has a PEG ratio of 4.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 1.49.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 12% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.