Yahoo Finance Nike (NKE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Nike (NKE) closed at $137.81, marking a +3.24% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.74%.
Heading into today, shares of the athletic apparel maker had lost 0.14% over the past month, outpacing the Consumer Discretionary sector's loss of 2.43% and lagging the S&P 500's gain of 3.21% in that time.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. The company is expected to report EPS of $0.49, up 196.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.09 billion, up 75.67% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.12 per share and revenue of $43.28 billion. These results would represent year-over-year changes of +95% and +15.72%, respectively.
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. 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. 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. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. NKE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NKE currently has a Forward P/E ratio of 42.77. Its industry sports an average Forward P/E of 22.57, so we one might conclude that NKE is trading at a premium comparatively.
Investors should also note that NKE has a PEG ratio of 2.49 right now. 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. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.72 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 124, putting it in the top 49% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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