Nike (NKE) Gains But Lags Market: What You Should Know
In the latest trading session, Nike (NKE) closed at $133.61, marking a +0.16% move from the previous day. This move lagged the S&P 500's daily gain of 1.22%.
Coming into today, shares of the athletic apparel maker had gained 0.85% in the past month. In that same time, the Consumer Discretionary sector lost 3.89%, while the S&P 500 lost 1.49%.
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 $0.52 per share, which would represent year-over-year growth of 201.96%. Our most recent consensus estimate is calling for quarterly revenue of $11.09 billion, up 75.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $43.28 billion. These totals would mark changes of +96.25% and +15.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.41% higher within the past month. NKE is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, NKE currently has a Forward P/E ratio of 42.45. This represents a premium compared to its industry's average Forward P/E of 21.35.
We can also see that NKE currently has a PEG ratio of 2.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.32 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 119, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NIKE, Inc. (NKE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
