Nike (NYSE:NKE) closed the most recent trading day at $90.93, moving -1.89% from the previous trading session. This change was narrower than the S&P 500's 2.81% loss on the day. At the same time, the Dow lost 2.94%, and the tech-heavy Nasdaq lost 3%.
Heading into today, shares of the athletic apparel maker had lost 6.64% over the past month, outpacing the Consumer Discretionary sector's loss of 7.31% and lagging the S&P 500's loss of 3.97% in that time.
Investors will be hoping for strength from NKE as it approaches its next earnings release, which is expected to be March 24, 2020. The company is expected to report EPS of $0.64, down 5.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.13 billion, up 5.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $42.01 billion. These totals would mark changes of +17.27% and +7.41%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NKE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.22% lower. NKE currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, NKE is holding a Forward P/E ratio of 31.79. This represents a premium compared to its industry's average Forward P/E of 14.01.
Also, we should mention that NKE has a PEG ratio of 2.28. 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 1.51 at yesterday's closing price.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
NIKE, Inc. (NKE): Free Stock Analysis Report
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