The latest trading session saw Nike (NKE) ending at $57.04, denoting a -0.54% adjustment from its last day's close. This change was narrower than the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.95%, and the technology-centric Nasdaq decreased by 0.87%.
The athletic apparel maker's stock has climbed by 3.13% in the past month, falling short of the Consumer Discretionary sector's gain of 14.18% and the S&P 500's gain of 11.54%.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.10, reflecting a 90.1% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.65 billion, showing a 15.49% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $45.87 billion, which would represent changes of -45.57% and -10.7%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Nike is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 26.68. This expresses a premium compared to the average Forward P/E of 12.47 of its industry.
Meanwhile, NKE's PEG ratio is currently 1.78. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1 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 225, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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