Nike (NKE - Free Report) closed the most recent trading day at $89.50, moving -0.61% from the previous trading session. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.26%.
Coming into today, shares of the athletic apparel maker had lost 5.09% in the past month. In that same time, the Consumer Discretionary sector gained 3.66%, while the S&P 500 gained 4.12%.
Investors will be hoping for strength from NKE as it approaches its next earnings release. The company is expected to report EPS of $0.57, up 9.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.08 billion, up 7.53% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $42.23 billion. These results would represent year-over-year changes of +19.28% and +7.96%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. NKE is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, NKE currently has a Forward P/E ratio of 30.29. Its industry sports an average Forward P/E of 17.09, so we one might conclude that NKE is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 2.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.85 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 62, putting it in the top 25% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.