Yahoo Finance Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE) closed the most recent trading day at $126.88, moving +0.23% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.
Prior to today's trading, shares of the athletic apparel maker had gained 5.3% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.01% and the S&P 500's gain of 1.18% in that time.
Nike will be looking to display strength as it nears its next earnings release. On that day, Nike is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 26.67%. Our most recent consensus estimate is calling for quarterly revenue of $12.56 billion, up 2.66% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $50.95 billion. These results would represent year-over-year changes of -13.6% and +9.08%, respectively.
It is also important to note the recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.15% higher within the past month. Nike is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 39.06 right now. Its industry sports an average Forward P/E of 13.24, so we one might conclude that Nike is trading at a premium comparatively.
We can also see that NKE currently has a PEG ratio of 3.69. 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 was holding an average PEG ratio of 2.47 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
