In the latest close session, Nike (NKE) was down 1.93% at $61.43. This move lagged the S&P 500's daily loss of 1.56%. On the other hand, the Dow registered a loss of 0.84%, and the technology-centric Nasdaq decreased by 2.16%.
Heading into today, shares of the athletic apparel maker had lost 9.32% over the past month, outpacing the Consumer Discretionary sector's loss of 19.77% and lagging the S&P 500's loss of 0.26%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.37, signifying a 52.56% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.15 billion, indicating a 1.64% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $46.69 billion, representing changes of -24.07% and +0.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.45% fall in the Zacks Consensus EPS estimate. Right now, Nike possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 38.19. This represents a premium compared to its industry average Forward P/E of 14.33.
It is also worth noting that NKE currently has a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel was holding an average PEG ratio of 0.77 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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