Nike (NKE) ended the recent trading session at $61.01, demonstrating a -1.88% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw a downswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
Shares of the athletic apparel maker witnessed a gain of 0.6% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 1.82%, and outperforming the S&P 500's loss of 1.33%.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on March 31, 2026. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 40.74% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.29 billion, reflecting a 0.17% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.57 per share and revenue of $46.83 billion, which would represent changes of -27.31% and +1.12%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nike currently has a Zacks Rank of #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 39.72. This signifies a premium in comparison to the average Forward P/E of 15.15 for its industry.
Also, we should mention that NKE has a PEG ratio of 3.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NKE's industry had an average PEG ratio of 1.58 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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