In the latest trading session, Nike (NKE) closed at $105.12, marking a -0.28% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.8%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 1.69%.
Heading into today, shares of the athletic apparel maker had gained 9.28% over the past month, outpacing the Consumer Discretionary sector’s gain of 5.23% and the S&P 500’s gain of 5.66% in that time.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. On that day, NKE is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 54.65%. Our most recent consensus estimate is calling for quarterly revenue of $9.03 billion, down 15.3% from the year-ago period.
NKE’s full-year Zacks Consensus Estimates are calling for earnings of $2.25 per share and revenue of $39.27 billion. These results would represent year-over-year changes of +40.63% and +4.99%, respectively.
Investors should also note any recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.83% higher. NKE currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 46.85 right now. Its industry sports an average Forward P/E of 29.08, so we one might conclude that NKE is trading at a premium comparatively.
Meanwhile, NKE’s PEG ratio is currently 2.87. 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 3.38 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 209, putting it in the bottom 18% 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.