Nike (NKE) closed at $73.00 in the latest trading session, marking a -1.79% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.
Shares of the athletic apparel maker witnessed a loss of 2.7% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 5.91%, and the S&P 500's gain of 3.44%.
The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is slated to reveal its earnings on September 30, 2025. On that day, Nike is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 60%. At the same time, our most recent consensus estimate is projecting a revenue of $10.98 billion, reflecting a 5.23% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.69 per share and a revenue of $45.72 billion, demonstrating changes of -21.76% and -1.26%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nike is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 44.11. This signifies a premium in comparison to the average Forward P/E of 19.03 for its industry.
Investors should also note that NKE has a PEG ratio of 2.7 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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NIKE, Inc. (NKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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