Is Nike (NKE) a 'Buy' Ahead of Its Upcoming Earnings Announcement?

Global sportswear leader Nike is set to report its fiscal third-quarter earnings results on Tuesday after the closing bell. A Zacks Rank #3 (Hold), Nike has surpassed the earnings mark in each of the past four quarters. But with Nike widely underperforming this year, is the stock a buy prior to the release?Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Analysts are expecting the company to post a profit of 31 cents per share, reflecting a 42.6% drop versus the same quarter last year. Sales are projected to decline slightly to $11.23 billion during the quarter.Aggressive reductions in aging footwear franchises and a deep reset in China are weighing on sales. Elevated expenses and ongoing digital traffic declines further limit Nike’s profitability.A positive for investors is the company’s strong track record of beating earnings estimates. Nike delivered a trailing four-quarter average earnings surprise of nearly 60%.Still, ongoing pressures remain including structural cost headwinds related to tariffs. Nike NKE shares are down roughly 18% this year and are underperforming the major indexes.Our proprietary Zacks Earnings Expected Surprise Prediction (ESP) indicator does not conclusively predict another earnings beat. Investors would be wise to exercise caution ahead of the upcoming announcement.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks