Nike (NKE) Gains As Market Dips: What You Should Know
Nike (NKE) closed the latest trading day at $89.44, indicating a +0.06% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.39%.
Heading into today, shares of the athletic apparel maker had gained 7.36% over the past month, outpacing the Consumer Discretionary sector's gain of 4.45% and the S&P 500's gain of 2.43% in that time.
The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company is scheduled to release its earnings on October 1, 2024. The company's upcoming EPS is projected at $0.51, signifying a 45.74% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $11.64 billion, down 10.02% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.03 per share and a revenue of $48.69 billion, signifying shifts of -23.29% and -5.21%, respectively, from the last year.
Any recent changes to analyst estimates for Nike should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% decrease. Nike presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Nike is presently trading at a Forward P/E ratio of 29.54. This denotes a premium relative to the industry's average Forward P/E of 16.7.
We can additionally observe that NKE currently boasts a PEG ratio of 2.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Shoes and Retail Apparel was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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NIKE, Inc. (NKE) : Free Stock Analysis Report