Nike (NKE) Increases Despite Market Slip: Here's What You Need to Know

Nike (NKE) ended the recent trading session at $42.45, demonstrating a +2.22% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq lost 0.83%.

Prior to today's trading, shares of the athletic apparel maker had lost 3.89% lagged the Consumer Discretionary sector's gain of 0.05% and the S&P 500's gain of 3.52%.

Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company is expected to report EPS of $0.43, down 12.24% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $11.46 billion, indicating a 2.19% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $46.28 billion, representing changes of +10.13% and -0.25%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nike. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has shifted 1.06% downward. As of now, Nike holds a Zacks Rank of #4 (Sell).

In the context of valuation, Nike is at present trading with a Forward P/E ratio of 23.87. This denotes a premium relative to the industry average Forward P/E of 12.78.

Investors should also note that NKE has a PEG ratio of 1.84 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Shoes and Retail Apparel was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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