Nike (NKE) Outpaces Stock Market Gains: What You Should Know

Nike (NKE) closed at $87.56 in the latest trading session, marking a +0.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.4%.

Heading into today, shares of the athletic apparel maker had gained 7.57% over the past month, outpacing the Consumer Discretionary sector's gain of 5.52% and the S&P 500's gain of 3.92% in that time.

Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be September 24, 2019. The company is expected to report EPS of $0.71, up 5.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.45 billion, up 5.04% from the prior-year quarter.

NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.90 per share and revenue of $42.17 billion. These results would represent year-over-year changes of +16.47% and +7.81%, respectively.

It is also important to note the recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.21% lower within the past month. NKE currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 30.12 right now. Its industry sports an average Forward P/E of 15.77, so we one might conclude that NKE is trading at a premium comparatively.

We can also see that NKE currently has a PEG ratio of 2.32. 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 1.38 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 40, putting it in the top 16% 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.

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