Nike (NKE) Outpaces Stock Market Gains: What You Should Know
Nike (NKE) closed at $169.72 in the latest trading session, marking a +1.15% move from the prior day.
Nike (NKE) closed at $169.72 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%.
Prior to today's trading, shares of the athletic apparel maker had gained 0.86% over the past month. This has outpaced the Consumer Discretionary sector's loss of 1.2% and lagged the S&P 500's gain of 2.85% in that time.
NKE will be looking to display strength as it nears its next earnings release, which is expected to be September 23, 2021. The company is expected to report EPS of $1.11, up 16.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.53 billion, up 18.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.30 per share and revenue of $50.02 billion, which would represent changes of +20.79% and +12.31%, respectively, from the prior year.
Any recent changes to analyst estimates for NKE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1% higher within the past month. NKE is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, NKE is currently trading at a Forward P/E ratio of 39.06. For comparison, its industry has an average Forward P/E of 18.04, which means NKE is trading at a premium to the group.
We can also see that NKE currently has a PEG ratio of 2.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
To follow NKE in the coming trading sessions, be sure to utilize Zacks.com.
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