Nike (NKE) ended the recent trading session at $67.43, demonstrating a -1.69% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.23%. On the other hand, the Dow registered a gain of 0.34%, and the technology-centric Nasdaq increased by 0.8%.
Shares of the athletic apparel maker witnessed a loss of 1.38% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 4.38%, and underperforming the S&P 500's gain of 3.57%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.37, indicating a 52.56% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.14 billion, indicating a 1.74% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.65 per share and a revenue of $46.5 billion, demonstrating changes of -23.61% and +0.42%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% lower within the past month. As of now, Nike holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 41.64. This expresses a premium compared to the average Forward P/E of 18.51 of its industry.
Meanwhile, NKE's PEG ratio is currently 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 0.81.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 221, positioning it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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NIKE, Inc. (NKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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