In the latest trading session, Nike (NKE) closed at $39.12, marking a +1.16% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.51%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq lost 1.07%.
Shares of the athletic apparel maker have appreciated by 14.17% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.67%, and the S&P 500's loss of 0.87%.
Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.34, signifying a 35.85% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $11.12 billion, down 10.55% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $42.71 billion, demonstrating changes of -22.78% and -7.95%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 24.42% lower. Currently, Nike is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 31.71. This represents a premium compared to its industry average Forward P/E of 12.72.
Investors should also note that NKE has a PEG ratio of 4.52 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. By the end of yesterday's trading, the Shoes and Retail Apparel industry had an average PEG ratio of 1.41.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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NIKE, Inc. (NKE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).