Nike (NKE) closed the most recent trading day at $114, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.
Heading into today, shares of the athletic apparel maker had gained 5.5% over the past month, lagging the Consumer Discretionary sector's gain of 6.63% and the S&P 500's gain of 8.25% in that time.
Investors will be hoping for strength from Nike as it approaches its next earnings release. The company is expected to report EPS of $0.93, down 19.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.36 billion, up 0.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $50.48 billion, which would represent changes of +1.87% and +8.07%, respectively, from the prior year.
Any recent changes to analyst estimates for Nike should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.86% lower within the past month. Nike is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Nike is holding a Forward P/E ratio of 29.79. This represents a premium compared to its industry's average Forward P/E of 13.09.
Meanwhile, NKE's PEG ratio is currently 2.39. 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 was holding an average PEG ratio of 2.39 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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NIKE, Inc. (NKE) : Free Stock Analysis Report
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