Yahoo Finance Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE) closed at $144.64 in the latest trading session, marking a +0.45% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Prior to today's trading, shares of the athletic apparel maker had lost 14.69% over the past month. This has lagged the Consumer Discretionary sector's loss of 13.15% and the S&P 500's loss of 7.87% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.72 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.61 billion, up 2.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.69 per share and revenue of $47.13 billion, which would represent changes of +3.65% and +5.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Nike currently has a Zacks Rank of #3 (Hold).
Investors should also note Nike's current valuation metrics, including its Forward P/E ratio of 39. This valuation marks a premium compared to its industry's average Forward P/E of 13.95.
Meanwhile, NKE's PEG ratio is currently 2.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NKE's industry had an average PEG ratio of 0.92 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 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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