Yahoo Finance Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE) closed the most recent trading day at $83.68, moving +1.6% from the previous trading session. This change outpaced the S&P 500's 0.07% gain on the day. Meanwhile, the Dow lost 0.21%, and the Nasdaq, a tech-heavy index, added 0.13%.
Prior to today's trading, shares of the athletic apparel maker had gained 7.77% over the past month. This has outpaced the Consumer Discretionary sector's gain of 4.92% and the S&P 500's gain of 5.36% in that time.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. On that day, NKE is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 7.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.50 billion, up 5.7% 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 $39.12 billion. These totals would mark changes of +8.68% and +7.48%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NKE. 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.
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.
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 0.2% higher within the past month. NKE is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 31.33 right now. For comparison, its industry has an average Forward P/E of 15.35, which means NKE is trading at a premium to the group.
Meanwhile, NKE's PEG ratio is currently 2.54. 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. NKE's industry had an average PEG ratio of 1.5 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 67, putting it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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