Nike (NKE) Stock Falls Amid Market Uptick: What Investors Need to Know

Nike (NKE) closed the latest trading day at $73.58, indicating a -0.8% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 1.22%.Shares of the athletic apparel maker have appreciated by 3.97% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 8.83% and the S&P 500's loss of 8.15%.Investors will be eagerly watching for the performance of Nike in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 20, 2025. The company is forecasted to report an EPS of $0.28, showcasing a 71.43% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $11.12 billion, reflecting a 10.57% fall from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and revenue of $46.24 billion, which would represent changes of -48.1% and -9.98%, respectively, from the prior year.Investors should also pay attention to any latest changes in analyst estimates for Nike. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.25% higher within the past month. 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 36.13. This represents a premium compared to its industry's average Forward P/E of 11.47.We can additionally observe that NKE currently boasts a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 218, this industry ranks in the bottom 14% of all industries, numbering over 250.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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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