Nike (NKE) ended the recent trading session at $64.09, demonstrating a +1.59% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.77%. Elsewhere, the Dow saw an upswing of 0.76%, while the tech-heavy Nasdaq appreciated by 1.05%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.92% was narrower than the Consumer Discretionary sector's loss of 3.96% and lagged the S&P 500's loss of 0.98%.
The upcoming earnings release of Nike will be of great interest to investors. The company is predicted to post an EPS of $0.32, indicating a 40.74% decline compared to the equivalent quarter last year. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.57 per share and a revenue of $46.83 billion, representing changes of -27.31% and +1.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Nike possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 40.3 right now. Its industry sports an average Forward P/E of 16.05, so one might conclude that Nike is trading at a premium comparatively.
It is also worth noting that NKE currently has a PEG ratio of 3.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.47 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 157, putting it in the bottom 36% 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.
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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