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Nike (NKE) Gains But Lags Market: What You Should Know

Nike (NKE) closed the most recent trading day at $168.03, moving +0.27% from the previous trading session.

This story originally appeared on Zacks

Nike (NKE) closed at $168.03 in the latest trading session, marking a +0.27% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day.

- Zacks

Prior to today's trading, shares of the athletic apparel maker had gained 0.04% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.72% and the S&P 500's gain of 2.56% in that time.

Wall Street will be looking for positivity from NKE as it approaches its next earnings report date. This is expected to be September 23, 2021. In that report, analysts expect NKE to post earnings of $1.11 per share. This would mark year-over-year growth of 16.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.53 billion, up 18.28% from the year-ago period.

NKE's full-year Zacks Consensus Estimates are calling for earnings of $4.30 per share and revenue of $50.02 billion. These results would represent year-over-year changes of +20.79% and +12.31%, respectively.

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. 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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. NKE is currently a Zacks Rank #2 (Buy).

Investors should also note NKE's current valuation metrics, including its Forward P/E ratio of 39.01. For comparison, its industry has an average Forward P/E of 17.57, which means NKE is trading at a premium to the group.

It is also worth noting that NKE currently has a PEG ratio of 2.56. 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. NKE's industry had an average PEG ratio of 1.33 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 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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