In the latest trading session, Nike (NKE) closed at $109.49, marking a -1.55% move from the previous day. This change lagged the S&P 500’s daily gain of 0.25%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.54%.
Heading into today, shares of the athletic apparel maker had lost 11.02% over the past month, outpacing the Consumer Discretionary sector’s loss of 17.6% and the S&P 500’s loss of 11.03% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release. On that day, Nike is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 7.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.39 billion, up 0.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.72 per share and revenue of $46.87 billion. These totals would mark changes of +4.49% and +5.23%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Nike. 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, 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 has moved 0.06% lower. Nike is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Nike is holding a Forward P/E ratio of 29.88. For comparison, its industry has an average Forward P/E of 12.85, which means Nike is trading at a premium to the group.
Also, we should mention that NKE has a PEG ratio of 2.14. 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 1.42 as of yesterday’s close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
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NIKE, Inc. (NKE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.