The latest trading session saw Nike (NKE) ending at $61.91, denoting a -1.42% adjustment from its last day's close. This change lagged the S&P 500's 0.09% gain on the day.
Prior to today's trading, shares of the athletic apparel maker had gained 7.72% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.1% and outpaced the S&P 500's gain of 7.21% in that time.
The upcoming earnings release of Nike will be of great interest to investors. The company's earnings report is expected on June 26, 2025. In that report, analysts expect Nike to post earnings of $0.11 per share. This would mark a year-over-year decline of 89.11%. Our most recent consensus estimate is calling for quarterly revenue of $10.67 billion, down 15.35% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 no change in the Zacks Consensus EPS estimate. At present, Nike boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Nike is at present trading with a Forward P/E ratio of 32.33. Its industry sports an average Forward P/E of 17.04, 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 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 17% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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