In the latest trading session, Nike (NKE) closed at $62.08, marking a -1.63% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 0.02%.
Shares of the athletic apparel maker have appreciated by 13.18% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 19.62% and outperforming the S&P 500's gain of 13.05%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.11, indicating an 89.11% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.67 billion, showing a 15.35% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.15 per share and a revenue of $45.88 billion, indicating changes of -45.57% and -10.67%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 moved 0.37% higher. Currently, Nike is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 29.31. Its industry sports an average Forward P/E of 16.31, so one might conclude that Nike is trading at a premium comparatively.
Investors should also note that NKE has a PEG ratio of 1.95 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NKE's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 10% 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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