Nike (NKE) closed the most recent trading day at $106.52, moving -0.92% from the previous trading session. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Heading into today, shares of the athletic apparel maker had lost 15.96% over the past month, lagging the Consumer Discretionary sector's loss of 5.24% and the S&P 500's gain of 1.03% in that time.
Investors will be hoping for strength from Nike as it approaches 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 $12.57 billion, up 2.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $50.96 billion. These totals would mark changes of -13.6% and +9.1%, respectively, from last year.
Any recent changes to analyst estimates for Nike should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.02% higher within the past month. Nike is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Nike is currently trading at a Forward P/E ratio of 33.17. This valuation marks a premium compared to its industry's average Forward P/E of 11.5.
Investors should also note that NKE has a PEG ratio of 3.12 right now. 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. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report