Yahoo Finance Nike (NKE) Gains But Lags Market: What You Should Know
Nike (NKE) closed the most recent trading day at $116.32, moving +0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the athletic apparel maker had gained 10.86% over the past month. This has lagged the Consumer Discretionary sector's gain of 13.81% and the S&P 500's gain of 12.15% in that time.
Nike will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nike to post earnings of $0.93 per share. This would mark a year-over-year decline of 19.83%. Our most recent consensus estimate is calling for quarterly revenue of $12.37 billion, up 0.98% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.80 per share and revenue of $50.49 billion. These results would represent year-over-year changes of +1.33% and +8.1%, respectively.
It is also important to note the recent changes to analyst estimates for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 1.47% lower within the past month. Nike is currently a Zacks Rank #4 (Sell).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 30.55. This represents a premium compared to its industry's average Forward P/E of 13.4.
Investors should also note that NKE has a PEG ratio of 2.45 right now. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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