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

The most recent trading session ended with Nike (NKE) standing at $105.27, reflecting a +1.91% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

Shares of the athletic apparel maker have appreciated by 1.37% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.42% and the S&P 500's gain of 2.99%.

Analysts and investors alike will be keeping a close eye on the performance of Nike in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.70, indicating a 11.39% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.29 billion, down 0.82% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.56 per share and a revenue of $51.75 billion, signifying shifts of +10.22% and +1.04%, respectively, from the last year.

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It is also important to note the recent changes to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.21% lower within the past month. Nike is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Nike is at present trading with a Forward P/E ratio of 29.01. Its industry sports an average Forward P/E of 13.93, so one might conclude that Nike is trading at a premium comparatively.

Also, we should mention that NKE has a PEG ratio of 1.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Shoes and Retail Apparel industry had an average PEG ratio of 1.88 as trading concluded yesterday.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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NIKE, Inc. (NKE) : Free Stock Analysis Report

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