Back to top

Image: Bigstock

Nike (NKE) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Nike (NKE - Free Report) closed the most recent trading day at $83.48, moving +1.77% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.66%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.38%.

Coming into today, shares of the athletic apparel maker had lost 5.93% in the past month. In that same time, the Consumer Discretionary sector lost 7.36%, while the S&P 500 lost 5.01%.

Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be September 24, 2019. The company is expected to report EPS of $0.71, up 5.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.45 billion, up 5.04% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.90 per share and revenue of $42.21 billion, which would represent changes of +16.47% and +7.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NKE. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NKE currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 28.25 right now. For comparison, its industry has an average Forward P/E of 13.63, which means NKE is trading at a premium to the group.

It is also worth noting that NKE currently has a PEG ratio of 2.17. 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. NKE's industry had an average PEG ratio of 1.34 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 30, which puts it in the top 12% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


NIKE, Inc. (NKE) - free report >>

Published in