In the latest trading session, Nike (NKE - Free Report) closed at $73.34, marking a -0.45% move from the previous day. This change lagged the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.
Heading into today, shares of the athletic apparel maker had lost 0.9% over the past month, outpacing the Consumer Discretionary sector's loss of 8.38% and the S&P 500's loss of 6.96% in that time.
NKE will be looking to display strength as it nears its next earnings release, which is expected to be March 28, 2019. In that report, analysts expect NKE to post earnings of $0.63 per share. This would mark a year-over-year decline of 7.35%. Meanwhile, our latest consensus estimate is calling for revenue of $9.49 billion, up 5.68% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $39.11 billion. These totals would mark changes of +8.26% and +7.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for NKE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. NKE currently has a Zacks Rank of #3 (Hold).
Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 28.08. Its industry sports an average Forward P/E of 14.46, so we one might conclude that NKE is trading at a premium comparatively.
Meanwhile, NKE's PEG ratio is currently 2.28. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.