Nike (NKE) closed the latest trading day at $61.78, indicating a -1.67% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq depreciated by 0.51%.
Heading into today, shares of the athletic apparel maker had gained 9.19% over the past month, lagging the Consumer Discretionary sector's gain of 10.54% and outpacing the S&P 500's gain of 7.37% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company is expected to report EPS of $0.11, down 89.11% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $10.67 billion, indicating a 15.35% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.15 per share and a revenue of $45.88 billion, demonstrating changes of -45.57% and -10.67%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.37% rise in the Zacks Consensus EPS estimate. Nike is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 29.18. This denotes a premium relative to the industry's average Forward P/E of 16.61.
It's also important to note that NKE currently trades at a PEG ratio of 1.95. 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 1.16 as of yesterday's close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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