In the latest trading session, Nike (NKE - Free Report) closed at $84.46, marking a -0.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.73%, and the tech-heavy Nasdaq lost 0.11%.
Heading into today, shares of the athletic apparel maker had gained 4.08% over the past month, outpacing the Consumer Discretionary sector's gain of 1.56% and the S&P 500's gain of 0.73% in that time.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be December 20, 2018. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.16 billion, up 7.04% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $39.11 billion. These results would represent year-over-year changes of +8.68% and +7.46%, respectively.
Any recent changes to analyst estimates for NKE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. NKE is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, NKE is currently trading at a Forward P/E ratio of 32.26. Its industry sports an average Forward P/E of 18.28, so we one might conclude that NKE is trading at a premium comparatively.
Investors should also note that NKE has a PEG ratio of 2.81 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. NKE's industry had an average PEG ratio of 1.61 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 39, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.