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Nike (NKE) Ascends While Market Falls: Some Facts to Note
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Nike (NKE - Free Report) closed the most recent trading day at $88, moving +0.62% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.04%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.54% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.53% and outpaced the S&P 500's gain of 1.95% in that time.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on October 1, 2024. The company's upcoming EPS is projected at $0.51, signifying a 45.74% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.64 billion, reflecting a 10% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $48.65 billion, representing changes of -23.29% and -5.28%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.39% lower. As of now, Nike holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 28.83. This denotes a premium relative to the industry's average Forward P/E of 15.67.
We can additionally observe that NKE currently boasts a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nike (NKE) Ascends While Market Falls: Some Facts to Note
Nike (NKE - Free Report) closed the most recent trading day at $88, moving +0.62% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.04%.
Prior to today's trading, shares of the athletic apparel maker had gained 2.54% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.53% and outpaced the S&P 500's gain of 1.95% in that time.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on October 1, 2024. The company's upcoming EPS is projected at $0.51, signifying a 45.74% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.64 billion, reflecting a 10% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $48.65 billion, representing changes of -23.29% and -5.28%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.39% lower. As of now, Nike holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 28.83. This denotes a premium relative to the industry's average Forward P/E of 15.67.
We can additionally observe that NKE currently boasts a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.