Nike (NKE) ended the recent trading session at $63.91, demonstrating a +1.93% change from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 2.05%. On the other hand, the Dow registered a gain of 2.54%, and the technology-centric Nasdaq increased by 2.27%.
Shares of the athletic apparel maker witnessed a loss of 3.92% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 5.61%, and underperforming the S&P 500's loss of 1.49%.
The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. On that day, Nike is projected to report earnings of $0.32 per share, which would represent a year-over-year decline of 40.74%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.29 billion, indicating a 0.17% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.57 per share and revenue of $46.83 billion, indicating changes of -27.31% and +1.12%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Nike is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 40.05. For comparison, its industry has an average Forward P/E of 15.76, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 3.21 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much 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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