Yahoo Finance Nike (NKE) Laps the Stock Market: Here's Why
Nike (NKE) closed the most recent trading day at $80.64, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.2%.
Heading into today, shares of the athletic apparel maker had lost 4.18% over the past month, lagging the Consumer Discretionary sector's gain of 2.35% and the S&P 500's gain of 1.54% in that time.
Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on October 1, 2024. In that report, analysts expect Nike to post earnings of $0.52 per share. This would mark a year-over-year decline of 44.68%. Meanwhile, the latest consensus estimate predicts the revenue to be $11.64 billion, indicating a 10% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.06 per share and revenue of $48.65 billion, indicating changes of -22.53% and -5.28%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.88% decrease. As of now, Nike holds a Zacks Rank of #4 (Sell).
In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 26.08. This represents a premium compared to its industry's average Forward P/E of 16.33.
Meanwhile, NKE's PEG ratio is currently 2.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Shoes and Retail Apparel industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NIKE, Inc. (NKE) : Free Stock Analysis Report
