money Nike (NKE) Gains But Lags Market: What You Should Know
In the latest trading session, Nike (NKE) closed at $102.46, marking a +0.45% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.87%.
Heading into today, shares of the athletic apparel maker had lost 2.47% over the past month, lagging the Consumer Discretionary sector's loss of 2.04% and the S&P 500's gain of 1.43% in that time.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. The company is expected to report EPS of $0.68, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.31 billion, up 7.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3 per share and revenue of $42.33 billion, which would represent changes of +20.48% and +8.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NKE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. NKE is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NKE has a Forward P/E ratio of 34.05 right now. This represents a premium compared to its industry's average Forward P/E of 15.91.
Meanwhile, NKE's PEG ratio is currently 2.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 2.02 as of yesterday's close.
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 42% 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.
Be sure to follow all of these stock-moving metrics, and many 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
To read this article on Zacks.com click here.
