Yahoo Finance Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE) closed at $96.97 in the latest trading session, marking a +0.73% move from the prior day. This move lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the athletic apparel maker had lost 1.82% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.08% and the S&P 500's gain of 7.09% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release. In that report, analysts expect NKE to post earnings of $0.40 per share. This would mark a year-over-year decline of 53.49%. Our most recent consensus estimate is calling for quarterly revenue of $9.04 billion, down 15.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $39.18 billion. These totals would mark changes of +39.38% and +4.74%, respectively, from last year.
Any recent changes to analyst estimates for NKE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.88% lower. NKE is currently a Zacks Rank #4 (Sell).
Digging into valuation, NKE currently has a Forward P/E ratio of 43.14. This represents a premium compared to its industry's average Forward P/E of 29.59.
Meanwhile, NKE's PEG ratio is currently 2.64. 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 2.64 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 217, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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