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Nike (NKE) Gains But Lags Market: What You Should Know

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In the latest trading session, Nike (NKE - Free Report) closed at $88.56, marking a +0.14% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 1.42%.

Investors will be hoping for strength from NKE as it approaches its next earnings release. On that day, NKE is projected to report earnings of $0.19 per share, which would represent a year-over-year decline of 69.35%. Our most recent consensus estimate is calling for quarterly revenue of $8.43 billion, down 17.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.66 per share and revenue of $39.28 billion, which would represent changes of +6.83% and +0.41%, 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. 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. 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 0.47% lower. NKE is currently a Zacks Rank #3 (Hold).

Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 33.28. For comparison, its industry has an average Forward P/E of 17.46, which means NKE is trading at a premium to the group.

We can also see that NKE currently has a PEG ratio of 2.72. 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 industry currently had an average PEG ratio of 1.9 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 240, which puts it in the bottom 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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