NIKE-Nike (NKE) Declines More Than Market: Some Information for Investors

Company Performance - Nike's stock closed at $73.57, reflecting a -0.97% change from the previous day, underperforming the S&P 500's loss of 0.29% [1] - Over the past month, Nike's shares have decreased by 3.44%, while the Consumer Discretionary sector gained 1.26% and the S&P 500 gained 2.52% [1] Earnings Projections - The upcoming earnings report for Nike is projected to show earnings per share (EPS) of$ 0.30, a significant decline of 69.39% from the same quarter last year [2] - Revenue is expected to be $11.15 billion, indicating a 10.26% decline compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of$ 2.10 per share and revenue of $46.34 billion, representing declines of -46.84% and -9.78% respectively from the previous year [3] - Recent shifts in analyst projections for Nike are important to monitor, as positive revisions may indicate optimism about the company's business and profitability [3] Zacks Rank and Valuation - Nike currently holds a Zacks Rank of 5 (Strong Sell), with a 3.2% decrease in the Zacks Consensus EPS estimate over the past month [5] - The Forward P/E ratio for Nike is 35.45, which is a premium compared to the industry average of 14.9 [6] - Nike's PEG ratio stands at 2.36, while the average PEG ratio for the Shoes and Retail Apparel industry is 1.77 [6] Industry Context - The Shoes and Retail Apparel industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 94, placing it in the top 38% of all industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]