Nike (NKE) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Nike (NKE) closed at $67.74, marking a +2.96% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.35%, while the tech-heavy Nasdaq depreciated by 0.26%. Heading into today, shares of the athletic apparel maker had gained 2.48% over the past month, outpacing the Consumer Discretionary sector's loss of 1.63% and the S&P 500's gain of 0.89%.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 December 18, 2025. It is anticipated that the company will report an EPS of $0.37, marking a 52.56% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $12.15 billion, indicating a 1.66% downward movement from the same quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.65 per share and a revenue of $46.72 billion, signifying shifts of -23.61% and +0.89%, respectively, from the last year. Any recent changes to analyst estimates for Nike should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Nike currently has a Zacks Rank of #3 (Hold). In terms of valuation, Nike is presently being traded at a Forward P/E ratio of 39.8. This valuation marks a premium compared to its industry average Forward P/E of 16.65. One should further note that NKE currently holds a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Shoes and Retail Apparel industry held an average PEG ratio of 0.85. The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% of all 250+ industries. The Zacks Industry Rank gauges the strength of our 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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