Nike (NKE) Registers a Bigger Fall Than the Market: Important Facts to Note

Nike (NKE) closed the most recent trading day at $74.31, moving -3.96% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.69%. Meanwhile, the Dow experienced a drop of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.82%. Shares of the athletic apparel maker witnessed a gain of 3.41% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 6.08%, and the S&P 500's gain of 3.79%.Market participants will be closely following the financial results of Nike in its upcoming release. The company plans to announce its earnings on September 30, 2025. The company is predicted to post an EPS of $0.27, indicating a 61.43% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.98 billion, showing a 5.23% drop compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $1.69 per share and a revenue of $45.72 billion, demonstrating changes of -21.76% and -1.26%, respectively, from the preceding year. Any recent changes to analyst estimates for Nike should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Nike is carrying a Zacks Rank of #3 (Hold). Digging into valuation, Nike currently has a Forward P/E ratio of 45.92. Its industry sports an average Forward P/E of 18.09, so one might conclude that Nike is trading at a premium comparatively. Meanwhile, NKE's PEG ratio is currently 2.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Shoes and Retail Apparel industry currently had an average PEG ratio of 1.16 as of yesterday's close. The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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