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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
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Nike (NKE - Free Report) closed at $76.60 in the latest trading session, marking a +0.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.06%.
The the stock of athletic apparel maker has fallen by 7.63% in the past month, lagging the Consumer Discretionary sector's gain of 5.33% and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 37.86% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.18 billion, indicating a 9.01% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $47.48 billion. These totals would mark changes of -30.63% and -7.55%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 0.87% decrease. Currently, Nike is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 27.66. This represents a premium compared to its industry's average Forward P/E of 16.7.
It is also worth noting that NKE currently has a PEG ratio of 1.84. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.41 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE - Free Report) closed at $76.60 in the latest trading session, marking a +0.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.06%.
The the stock of athletic apparel maker has fallen by 7.63% in the past month, lagging the Consumer Discretionary sector's gain of 5.33% and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 37.86% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.18 billion, indicating a 9.01% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $47.48 billion. These totals would mark changes of -30.63% and -7.55%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 0.87% decrease. Currently, Nike is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 27.66. This represents a premium compared to its industry's average Forward P/E of 16.7.
It is also worth noting that NKE currently has a PEG ratio of 1.84. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.41 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.