Why Nike (NKE) Outpaced the Stock Market Today

In the latest close session, Nike (NKE) was up +1.11% at $65.65. The stock exceeded the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow saw an upswing of 0.86%, while the tech-heavy Nasdaq appreciated by 0.17%. The athletic apparel maker's stock has climbed by 6.04% in the past month, exceeding the Consumer Discretionary sector's loss of 0.3% and the S&P 500's loss of 0.06%.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 December 18, 2025. The company's earnings per share (EPS) are projected to be $0.37, reflecting a 52.56% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $12.15 billion, showing a 1.64% drop compared to the year-ago quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.64 per share and a revenue of $46.69 billion, signifying shifts of -24.07% and -2.36%, respectively, from the last year. Investors might also notice recent changes to analyst estimates for Nike. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.45% fall in the Zacks Consensus EPS estimate. Nike is holding a Zacks Rank of #3 (Hold) right now. With respect to valuation, Nike is currently being traded at a Forward P/E ratio of 39.59. This signifies a premium in comparison to the average Forward P/E of 15.43 for its industry. It's also important to note that NKE currently trades at a PEG ratio of 2.3. 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 was holding an average PEG ratio of 0.81 at yesterday's closing price. The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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