Nike (NKE) Dips More Than Broader Markets: What You Should Know
Nike (NKE) closed the most recent trading day at $130.29, moving -0.81% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%.
Prior to today's trading, shares of the athletic apparel maker had lost 3.7% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.59% and the S&P 500's gain of 2.11% in that time.
NKE will be looking to display strength as it nears its next earnings release, which is expected to be June 24, 2021. The company is expected to report EPS of $0.50, up 198.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.09 billion, up 75.67% from the year-ago period.
It is also important to note the 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. NKE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NKE currently has a Forward P/E ratio of 34.05. Its industry sports an average Forward P/E of 21.61, so we one might conclude that NKE is trading at a premium comparatively.
We can also see that NKE currently has a PEG ratio of 1.63. 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. NKE's industry had an average PEG ratio of 1.48 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 48, which puts it in the top 19% 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.
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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