Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE) closed at $134.56 in the latest trading session, marking a +0.91% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 2.41%.
Heading into today, shares of the athletic apparel maker had lost 5.18% over the past month, lagging the Consumer Discretionary sector's gain of 1.67% and the S&P 500's loss of 1.04% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be March 18, 2021. On that day, NKE is projected to report earnings of $0.75 per share, which would represent a year-over-year decline of 3.85%. Our most recent consensus estimate is calling for quarterly revenue of $10.95 billion, up 8.39% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $43.12 billion. These results would represent year-over-year changes of +85% and +15.29%, respectively.
Investors might also notice recent changes to analyst estimates for NKE. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. NKE is currently a Zacks Rank #3 (Hold).
In terms of valuation, NKE is currently trading at a Forward P/E ratio of 45.05. This valuation marks a premium compared to its industry's average Forward P/E of 19.06.
We can also see that NKE currently has a PEG ratio of 2.34. 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 1.62 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 196, which puts it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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