Nike (NKE) closed at $104.96 in the latest trading session, marking a -0.94% move from the prior day. This change was narrower than the S&P 500's 1.54% loss on the day. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 0.16%.
Prior to today's trading, shares of the athletic apparel maker had gained 12.93% over the past month. This has outpaced the Consumer Discretionary sector's gain of 6.36% and the S&P 500's gain of 4.54% in that time.
Wall Street will be looking for positivity from Nike as it approaches its next earnings report date. This is expected to be December 20, 2022. In that report, analysts expect Nike to post earnings of $0.66 per share. This would mark a year-over-year decline of 20.48%. Meanwhile, our latest consensus estimate is calling for revenue of $12.58 billion, up 10.76% from the prior-year quarter.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $48.97 billion. These results would represent year-over-year changes of -20.8% and +4.84%, respectively.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. 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.
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 remained stagnant within the past month. Nike is currently a Zacks Rank #4 (Sell).
Digging into valuation, Nike currently has a Forward P/E ratio of 35.67. For comparison, its industry has an average Forward P/E of 17.86, which means Nike is trading at a premium to the group.
Investors should also note that NKE has a PEG ratio of 3.51 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 3.51 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 229, putting it in the bottom 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report