For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Sony (SONY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.Sony is a member of the Consumer Discretionary sector. ...

Investors in Birkenstock Holding PLC (BIRK) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 17, 2025 $22.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It cou ...

Key Takeaways NIKE stock closed below its 200-day SMA at $68.91, signaling bearish technical sentiment.The company's "Win Now" strategy is pressuring results as it shifts toward innovation-led products.Despite near-term softness, NIKE's fundamentals and brand strength support its long-term growth aims.Shares of NIKE Inc. (NKE) have lost momentum in recent months, pushing it below industry thresholds and portraying a bearish sentiment from a technical standpoint. As a result, the NKE stock slipped below its ...

Core Insights - Nike's fiscal first quarter results exceeded expectations, with stock rising over 6% following the announcement [1][2] - Despite challenges in digital sales and tariffs in China, strong performance in wholesale distribution and North America contributed to the positive results [1] Financial Performance - Nike reported Q1 earnings of $0.49 per share, down from $0.70 year-over-year, but surpassed EPS expectations of $0.27 by 81% [3] - Q1 sales reached $11.72 billion, an increase from $11.58 billion a year ago, exceeding estimates of $11 billion by 6% [3][4] Revenue Guidance - For Q2 FY2026, Nike expects a low single-digit revenue decline, aligning with the Zacks Consensus estimate of $11.95 billion, indicating a 3% decline [5] - Gross margins for Q2 are anticipated to decrease by approximately 300 to 375 basis points, with a net headwind of 175 basis points from new tariffs [8] Sales Estimates - Zacks Consensus estimates for upcoming quarters show projected sales of $11.95 billion for the current quarter and $11.40 billion for the next quarter, with a year-over-year decline of 3.24% expected [9] - Sales are projected to dip 1% in FY26 but are expected to rebound with a 6% increase in FY27, reaching $48.59 billion [8][9] Valuation Metrics - Nike stock is trading at less than 2X forward sales, compared to the industry average of 1X, but has a forward earnings multiple of 41.7X, significantly higher than the S&P 500 and industry average of 21.7X [10] - The current valuation suggests a moderately stretched P/E ratio, which may require significant earnings estimate revisions for a buy rating [12]

Core Viewpoint - Nike reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, but down from $0.7 per share a year ago, indicating an earnings surprise of +81.48% [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - Nike's revenues for the quarter ended August 2025 were $11.72 billion, surpassing the Zacks Consensus Estimate by 6.49%, compared to $11.59 billion in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $11.97 billion, and for the current fiscal year, it is $1.67 on revenues of $45.78 billion [7] Market Performance - Nike shares have declined approximately 8.1% since the beginning of the year, while the S&P 500 has gained 13.3% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expected underperformance in the near future [6] Industry Outlook - The Shoes and Retail Apparel industry, to which Nike belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Nike's stock performance [5]

Nike (NKE) closed at $73.00 in the latest trading session, marking a -1.79% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%. Shares of the athletic apparel maker witnessed a loss of 2.7% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 5.91%, and the S&P 500's gain of 3.44%.The investment community will be paying close attention to the ...

Core Insights - Wolverine World Wide, Inc. (WWW) maintained profitability momentum in Q2 2025, achieving record margins and healthy revenue growth [1] - The adjusted gross margin increased by 410 basis points year-over-year to 47.2%, driven by a favorable sales mix, reduced promotional activity, and supply-chain cost-saving initiatives [1][9] - The company expects long-term gross margins to remain between 45% and 47% due to pricing discipline and ongoing supply-chain optimization [5][9] Brand Performance - Saucony's gross margin rose by 560 basis points, benefiting from a strategic focus on premium products and higher average selling prices [2] - Merrell experienced a nearly 600 basis point increase in gross margin, driven by strong demand for modernized trail offerings [2] - Sweaty Betty improved by over 500 basis points due to its shift to premium, full-price positioning, while the Wolverine brand saw a gross margin increase of over 400 basis points [3] Operating Profitability - Adjusted operating margin increased by 290 basis points year-over-year to 9.2%, exceeding the company's 7.2% outlook [4] - The increase in operating profitability was attributed to revenue outperformance and SG&A leverage, allowing for reinvestment in marketing and talent [4] Future Expectations - For Q3, Wolverine anticipates a gross margin rise of 170 basis points to 47% and an adjusted operating margin increase of 60 basis points to 8.3% [5] - The company has taken measures to mitigate the impact of higher tariffs through sourcing diversification and selective price increases [6] Stock Performance and Valuation - WWW stock surged 76.6% over the past three months, outperforming the Zacks Shoes and Retail Apparel industry, which grew by 18.7% [7] - The company trades at a forward price-to-sales ratio of 1.27X, below the industry average of 2.01X [10] Earnings Estimates - The Zacks Consensus Estimate for WWW's current financial year's earnings implies a year-over-year growth of 46.2%, with an 18.8% growth forecast for the next financial year [11] - Earnings estimates for 2025 have been revised upward by 2 cents per share, while 2026 estimates increased by 4 cents in the past 30 days [11]

Industry Overview - The Zacks Shoes and Retail Apparel industry is focusing on brand-building initiatives and promotional efforts to enhance consumer engagement, driven by strong demand for activewear and wellness-oriented products [1][5] - Companies are leveraging product innovation, expanding athleisure collections, and investing in e-commerce and omnichannel strategies to capitalize on the growing trend towards healthy lifestyles [1][3] Challenges - The industry is facing persistent headwinds such as rising input and logistics costs, supply-chain disruptions, and elevated selling, general and administrative (SG&A) expenses, which are pressuring profit margins [2][7] - Macroeconomic factors including currency fluctuations, geopolitical uncertainty, and changes in tax and tariff policies are adding complexity to the operating environment [2][7] Future Outlook - Sustainable growth in the industry will depend on continued innovation, upgrades to digital infrastructure, and enhanced consumer engagement [3][5] - Established players like NIKE, Adidas, Skechers, Birkenstock, and Wolverine are well-positioned to navigate challenges and seize long-term opportunities [3][5] Consumer Demand Trends - There is a strong and steady consumer demand for athletic and athleisure products, projected to continue through 2025, with a growing appetite for performance and style [5] - The health and wellness movement is influencing buying patterns, leading to increased popularity of versatile, multi-functional footwear designs [5] E-Commerce Investments - Digital channels are a major growth engine for the athleisure market, with brands expanding their online presence through websites and social media [6] - Investments in supply-chain efficiency and fulfillment enhancements are critical for maintaining competitive advantages [6] Cost Headwinds - Companies are grappling with elevated costs due to commodity price inflation, supply-chain bottlenecks, and increased logistics expenses [7] - Higher SG&A expenses are driven by increased spending on marketing and digital initiatives, compounded by economic uncertainties and a challenging labor market [7] Industry Performance - The Zacks Shoes and Retail Apparel industry has underperformed compared to the broader Consumer Discretionary sector and the S&P 500, with a collective decline of 6.4% over the past year [12] - The industry currently holds a Zacks Industry Rank of 58, placing it in the top 24% of over 250 Zacks industries, indicating positive earnings outlooks for constituent companies [9][10] Valuation - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 28.96X, higher than the S&P 500's 23.02X and the sector's 20.24X [13] Notable Companies - **Skechers**: Focused on a multi-brand approach and e-commerce growth, with a projected sales growth of 8.2% for 2025 [18] - **Wolverine**: Emphasizing brand structure and efficiency, with expected sales growth of 6.5% and earnings growth of 46.2% for 2025 [22] - **NIKE**: Implementing a Consumer Direct Acceleration strategy, with projected declines in sales and earnings for fiscal 2026 [25] - **Adidas**: Benefiting from strong demand and improved margins, with projected sales growth of 13.8% and earnings growth of 86.5% for 2025 [29] - **Birkenstock**: Focused on high-quality products and DTC channels, with projected sales growth of 26.9% and earnings growth of 39.6% for fiscal 2025 [33]

Financial Performance - Caleres Inc. reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.51 per share, and down from $0.85 per share a year ago, representing an earnings surprise of -31.37% [1] - The company posted revenues of $658.52 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.21%, but down from $683.32 million year-over-year [2] - Over the last four quarters, Caleres has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Stock Performance - Caleres Inc. shares have declined approximately 35.5% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] - The current Zacks Rank for Caleres is 5 (Strong Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $757.5 million, and for the current fiscal year, it is $2.00 on revenues of $2.73 billion [7] - The outlook for the Shoes and Retail Apparel industry, where Caleres operates, is currently in the top 32% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Company Overview: Wolverine World Wide (WWW) - Wolverine World Wide currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - Over the past week, WWW shares increased by 3.97%, significantly outperforming the Zacks Shoes and Retail Apparel industry, which rose by only 0.13% [5] - In the last month, WWW's stock price surged by 44.13%, while the industry average was 12.41% [5] - Over the past quarter, WWW shares have risen by 79.94%, and over the last year, they have increased by 132.97%, compared to the S&P 500's gains of 9.68% and 16.9%, respectively [6] Trading Volume - The average 20-day trading volume for WWW is 2,145,693 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, four earnings estimates for WWW have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.05 to $1.33 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, WWW is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]