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

Nike (NKE) closed the most recent trading day at $77.81, moving +0.63% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 1.46%.Shares of the athletic apparel maker have appreciated by 0.78% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.8% and the S&P 500's loss of 4.13%.The investment community will be paying close attention to the earnings performance of Nike in its upcoming release. The company is slated to reveal its earnings on March 20, 2025. The company is expected to report EPS of $0.28, down 71.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.12 billion, indicating a 10.57% decrease compared to the same quarter of the previous year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and a revenue of $46.24 billion, representing changes of -48.1% and -9.98%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nike. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Nike is currently sporting a Zacks Rank of #3 (Hold).In terms of valuation, Nike is currently trading at a Forward P/E ratio of 37.66. This represents a premium compared to its industry's average Forward P/E of 12.67.It is also worth noting that NKE currently has a PEG ratio of 2.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 0.98.The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 216, placing it within the bottom 14% of over 250 industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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