Nike (NKE) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - Nike closed at $91.77, reflecting a -0.44% change from the previous day, underperforming the S&P 500's 0.09% gain [1] - Over the past month, Nike shares have decreased by 2.49%, while the Consumer Discretionary sector gained 1.96% and the S&P 500 increased by 5.78% [1] - Analysts expect Nike to report earnings of $0.86 per share, indicating a year-over-year growth of 30.3%, with projected revenue of $12.92 billion, a 0.71% increase from the same quarter last year [1] Annual Forecast - Zacks Consensus Estimates predict earnings of $3.73 per share and revenue of $51.66 billion for the year, representing changes of +15.48% and +0.86% respectively compared to the previous year [2] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Nike reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [2] - Nike has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [3] - The company is trading at a Forward P/E ratio of 24.71, which is a premium compared to the industry average of 16.42 [3] - Nike's PEG ratio stands at 1.78, compared to the Shoes and Retail Apparel industry's average PEG ratio of 1.73 [3] Industry Context - The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector and holds a Zacks Industry Rank of 22, placing it in the top 9% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]