In the latest trading session, Nike (NKE - Free Report) closed at $83.64, marking a +0.95% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.08%.
Prior to today's trading, shares of the athletic apparel maker had lost 5.16% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.76% and the S&P 500's loss of 2.06% in that time.
NKE will be looking to display strength as it nears its next earnings release. In that report, analysts expect NKE to post earnings of $0.67 per share. This would mark a year-over-year decline of 2.9%. Meanwhile, our latest consensus estimate is calling for revenue of $10.16 billion, up 3.83% from the prior-year quarter.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $39.09 billion. These results would represent year-over-year changes of +5.37% and +7.4%, respectively.
Investors should also note any recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. NKE currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NKE is holding a Forward P/E ratio of 32.47. This valuation marks a premium compared to its industry's average Forward P/E of 13.61.
It is also worth noting that NKE currently has a PEG ratio of 2.49. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.