Nike (NKE) Dips More Than Broader Market: What You Should Know

Nike (NKE) closed at $37.35 in the latest trading session, marking a -1.97% move from the prior day. This move lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 0.64%.

The stock of athletic apparel maker has fallen by 7.79% in the past month, lagging the Consumer Discretionary sector's loss of 3.74% and the S&P 500's loss of 0.97%.

The investment community will be closely monitoring the performance of Nike in its forthcoming earnings report. The company is scheduled to release its earnings on October 1, 2026. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 10.2% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.43 billion, reflecting a 2.44% fall from the equivalent quarter last year.

NKE's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $46.05 billion. These results would represent year-over-year changes of +10.13% and -0.76%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Nike holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 21.87 right now. This valuation marks a premium compared to its industry average Forward P/E of 12.25.

One should further note that NKE currently holds a PEG ratio of 1.87. 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 1.36 as trading concluded yesterday.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% 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.

To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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

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

Zacks Investment Research