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Here's Why Nike (NKE) Fell More Than Broader Market
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The most recent trading session ended with Nike (NKE - Free Report) standing at $76.90, reflecting a -1.83% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.51%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
Shares of the athletic apparel maker witnessed a gain of 6.33% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 4.16% and the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of Nike in its upcoming release. It is anticipated that the company will report an EPS of $0.30, marking a 69.39% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.15 billion, showing a 10.31% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.09 per share and a revenue of $46.32 billion, representing changes of -47.09% and -9.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.23% lower. Right now, Nike possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.39. This expresses a premium compared to the average Forward P/E of 15.12 of its industry.
One should further note that NKE currently holds a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.87.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Nike (NKE) Fell More Than Broader Market
The most recent trading session ended with Nike (NKE - Free Report) standing at $76.90, reflecting a -1.83% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.51%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
Shares of the athletic apparel maker witnessed a gain of 6.33% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 4.16% and the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of Nike in its upcoming release. It is anticipated that the company will report an EPS of $0.30, marking a 69.39% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $11.15 billion, showing a 10.31% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.09 per share and a revenue of $46.32 billion, representing changes of -47.09% and -9.81%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.23% lower. Right now, Nike possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.39. This expresses a premium compared to the average Forward P/E of 15.12 of its industry.
One should further note that NKE currently holds a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.87.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.