In the latest trading session, Nike (NKE) closed at $78.38, marking a +2.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.52%. Elsewhere, the Dow gained 1.89%, while the tech-heavy Nasdaq added 1.88%.
Shares of the athletic apparel maker witnessed a gain of 1.01% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 1.03%, and underperforming the S&P 500's gain of 1.1%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is forecasted to report an EPS of $0.27, showcasing a 61.43% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $10.98 billion, indicating a 5.23% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.69 per share and a revenue of $45.72 billion, indicating changes of -21.76% and -1.26%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.07% higher. Right now, Nike possesses a Zacks Rank of #4 (Sell).
Digging into valuation, Nike currently has a Forward P/E ratio of 45.21. This denotes a premium relative to the industry average Forward P/E of 17.47.
Also, we should mention that NKE has a PEG ratio of 2.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.13 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 80, putting it in the top 33% of all 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.
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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NIKE, Inc. (NKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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