Nike (NKE) Dips More Than Broader Markets: What You Should Know

Nike (NKE) closed the most recent trading day at $74.99, moving -1.21% from the previous trading session. This change lagged the S&P 500's 0.59% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.88%.

Prior to today's trading, shares of the athletic apparel maker had lost 9.06% over the past month. This has lagged the Consumer Discretionary sector's loss of 4.78% and the S&P 500's loss of 4.1% in that time.

Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be December 20, 2018. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.16 billion, up 7.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.63 per share and revenue of $39.11 billion. These totals would mark changes of +8.68% and +7.46%, respectively, from last year.

Any recent changes to analyst estimates for NKE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. NKE is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, NKE currently has a Forward P/E ratio of 28.91. For comparison, its industry has an average Forward P/E of 16.23, which means NKE is trading at a premium to the group.

Meanwhile, NKE's PEG ratio is currently 2.52. 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. The Shoes and Retail Apparel was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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