In the latest trading session, Nike (NKE) closed at $94.18, marking a +1.23% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.11%.
Prior to today's trading, shares of the athletic apparel maker had lost 2.64% over the past month. This has lagged the Consumer Discretionary sector's gain of 3.92% and the S&P 500's gain of 4.32% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release. The company is expected to report EPS of $0.57, up 9.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.08 billion, up 7.53% from the year-ago period.
NKE's full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $42.23 billion. These results would represent year-over-year changes of +19.28% and +7.96%, respectively.
Investors should also note any recent changes to analyst estimates for NKE. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. NKE is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, NKE is holding a Forward P/E ratio of 31.29. This valuation marks a premium compared to its industry's average Forward P/E of 16.92.
It is also worth noting that NKE currently has a PEG ratio of 2.4. 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 was holding an average PEG ratio of 1.86 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 69, which puts it in the top 28% 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.
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