Nike (NKE) closed the latest trading day at $62.39, indicating a -0.3% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.

Prior to today's trading, shares of the athletic apparel maker had gained 12.94% over the past month. This has lagged the Consumer Discretionary sector's gain of 16.16% and outpaced the S&P 500's gain of 9.07% in that time.

The upcoming earnings release of Nike will be of great interest to investors. The company is forecasted to report an EPS of $0.10, showcasing a 90.1% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.65 billion, down 15.49% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.15 per share and revenue of $45.87 billion, indicating changes of -45.57% and -10.7%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nike. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% increase. Nike is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Nike is holding a Forward P/E ratio of 29.11. This valuation marks a premium compared to its industry's average Forward P/E of 15.88.

We can also see that NKE currently has a PEG ratio of 1.94. 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. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 1.01.

Story Continues

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 221, this industry ranks in the bottom 11% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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NIKE, Inc. (NKE):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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