In the latest trading session, Nike (NKE – Free Report) closed at $80.24, marking a +0.14% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.04%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the athletic apparel maker had lost 0.35% in the past month. In that same time, the Consumer Discretionary sector lost 0.12%, while the S&P 500 gained 0.02%.
Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be December 20, 2018. In that report, analysts expect NKE to post earnings of $0.45 per share. This would mark a year-over-year decline of 2.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.16 billion, up 7.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $39.11 billion, which would represent changes of +8.68% and +7.46%, respectively, from the prior year.
Any recent changes to analyst estimates for NKE should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.23% higher. NKE currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NKE is holding a Forward P/E ratio of 30.51. This valuation marks a premium compared to its industry’s average Forward P/E of 16.84.
We can also see that NKE currently has a PEG ratio of 2.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. NKE’s industry had an average PEG ratio of 1.54 as of yesterday’s close.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 18% 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.