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Nike (NKE) Gains But Lags Market: What You Should Know September 19, 2024
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The most recent trading session ended with Nike (NKE - Free Report) standing at $80.98, reflecting a +0.1% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.7%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.
The athletic apparel maker's stock has dropped by 3.69% in the past month, falling short of the Consumer Discretionary sector's gain of 2.85% and the S&P 500's gain of 1.27%.
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, 2024. The company is expected to report EPS of $0.51, down 45.74% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $11.64 billion, showing a 10% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.04 per share and a revenue of $48.65 billion, indicating changes of -23.04% and -5.28%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.84% fall in the Zacks Consensus EPS estimate. Nike is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 26.63. This indicates a premium in contrast to its industry's Forward P/E of 16.39.
One should further note that NKE currently holds a PEG ratio of 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 1.79.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The most recent trading session ended with Nike (NKE - Free Report) standing at $80.98, reflecting a +0.1% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.7%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.
The athletic apparel maker's stock has dropped by 3.69% in the past month, falling short of the Consumer Discretionary sector's gain of 2.85% and the S&P 500's gain of 1.27%.
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, 2024. The company is expected to report EPS of $0.51, down 45.74% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $11.64 billion, showing a 10% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.04 per share and a revenue of $48.65 billion, indicating changes of -23.04% and -5.28%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.84% fall in the Zacks Consensus EPS estimate. Nike is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Nike is currently exchanging hands at a Forward P/E ratio of 26.63. This indicates a premium in contrast to its industry's Forward P/E of 16.39.
One should further note that NKE currently holds a PEG ratio of 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Shoes and Retail Apparel industry was having an average PEG ratio of 1.79.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.