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Here's Why Nike (NKE) Fell More Than Broader Market
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Nike (NKE - Free Report) closed the most recent trading day at $77.64, moving -1.58% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 0.62%.
The athletic apparel maker's shares have seen an increase of 3.97% over the last month, not keeping up with the Consumer Discretionary sector's gain of 8.66% and outstripping the S&P 500's gain of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings report is set to go public on December 19, 2024. The company is predicted to post an EPS of $0.64, indicating a 37.86% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.17 billion, reflecting a 9.13% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.73 per share and a revenue of $47.46 billion, indicating changes of -30.89% and -7.99%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% decrease. Currently, Nike is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Nike currently has a Forward P/E ratio of 28.89. This represents a premium compared to its industry's average Forward P/E of 16.74.
Also, we should mention that NKE has a PEG ratio of 1.93. 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 was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 250 industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Nike (NKE) Fell More Than Broader Market
Nike (NKE - Free Report) closed the most recent trading day at $77.64, moving -1.58% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.61%. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 0.62%.
The athletic apparel maker's shares have seen an increase of 3.97% over the last month, not keeping up with the Consumer Discretionary sector's gain of 8.66% and outstripping the S&P 500's gain of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings report is set to go public on December 19, 2024. The company is predicted to post an EPS of $0.64, indicating a 37.86% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.17 billion, reflecting a 9.13% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.73 per share and a revenue of $47.46 billion, indicating changes of -30.89% and -7.99%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% decrease. Currently, Nike is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Nike currently has a Forward P/E ratio of 28.89. This represents a premium compared to its industry's average Forward P/E of 16.74.
Also, we should mention that NKE has a PEG ratio of 1.93. 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 was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 13% of over 250 industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.