Is Trends Stock Nike, Inc. (NKE) a purchase now?

Nike (NKE) is one of the stocks that have recently been viewed by Zacks.com visitors. So it could be a good idea to check some of the factors that could influence the short -term performance of the share.

Last month, the shares of this sports clothing manufacturer have returned -0.7% compared to the changes in the Zack S&P 500 Composite. During this time, the Zacks Shoes and the retail clothing industry in which Nike falls have lost 9.9%. The key question now is: What could be the future direction of the stock?

Although media reports or rumors about a significant change in the business prospects of a company generally lead to the fact that its shares lead to trend and an immediate change in price, there are always certain basic factors that ultimately advance the purchase and hate decision.

Instead of concentrating on anything else, we prioritize the evaluation of the change in the profit projection of a company at Zacks. This is due to the fact that we believe that the current value for its shares is determined by the cash value of his future profit current.

We essentially take a look at how analysts that cover the shares reveal their profit estimates in order to reflect the effects of the latest business trends. And if the profit estimates for a company rise, the current value for its shares increases. A higher atmosphere to be used than the current market price gives investors the interest for buying the share, which leads at a higher price. For this reason, empirical research shows a strong correlation between trends in the revisions of the yield estimate and short -term share price movements.

Nike is expected to make a profit of $ 0.10 per share in the current quarter, which corresponds to a change of -90.1%compared to the previous year. In the past 30 days, the Zacks Consensus estimate has changed by -12.1%.

The consensus result estimate of $ 2.15 for the current financial year shows a change of -45.6%compared to the previous year. This estimate has changed +0.1% in the last 30 days.

For the next financial year, the consensus assessment of $ 1.95 shows a change of -9.3% compared to what Nike is expected a year ago. The estimate of -2.1%has changed last month.

With an impressive external, tested success balance sheet is our proprietary stock assessment tool and the Zacks-rank-rank-a more cozy indicator for the short-term price-performance of a share, since it effectively uses the power of the profit assessment revisions. The size of the recent change in the consensus estimate and three other factors in connection with the profit estimates led to a Zacks rank 3 (Hold) for Nike.

The following table shows the development of the company's 12-month consensus EPS EPS estimate:

12-month consensus EPS estimate for NKE _12MonthepScharturl

Although the profit growth of a company is probably the best indicator of its financial health, not much happens if it cannot increase its income. It is almost impossible for a company to increase its income without increasing its sales over long periods of time. It is therefore crucial to know the potential sales growth of a company.

For Nike, consensus sales for the current quarter of USD 10.64 billion shows a change of -15.6%compared to the previous year. For the current and next financial years, estimates of 45.85 billion US dollars and $ 45.22 billion indicate -10.7% or -1.4%.

Nike reported sales of $ 11.27 billion in the last quarter, which corresponds to a change of -9.3%compared to the previous year. EPS of $ 0.54 for the same period comparable to USD 0.98 a year ago.

Compared to the Zacks Consensus estimate of 11.03 billion US dollars, the registered income is a surprise of +2.13%. The EPS surprise was +92.86%.

The company defeated consensus -epseps estimates in each of the following four quarters. The company led the consensus sales estimates twice during this period.

No investment decision can be efficient without taking into account the evaluation of a share. Whether the current price of a share rightly reflects the internal value of the underlying business and the growth prospects of the company is an essential determinant for future price -performance.

During the comparison of the current values of the evaluation advantages of a company, such as price-to-profit (P/E), Price-to-Sales (P/S) and Price-to-Cash-Flow (P/CF), with its own historical values, to determine whether its shares are rather evaluated, overvalued or undervalued, the relative position is comparable to prices for the relative position.

As part of the ZACKS Style Scores system, the Zacks Value Style Score (which rates both traditional and unconventional valuation metrics) organizes shares in five groups that are rich from A to F (A is better than B; b is better than C; and so on).

Nike is evaluated on this front C, which points out that it will keep up with his colleagues. Click here to display the values of some evaluation metrics that have driven this grade.

The facts discussed here and a lot of other information about Zacks.com could help determine whether it is worth paying attention to the Nike market or not. However, the Zacks ranked 3rd indicate that it is in line with the broader market at short notice.

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Nike, Inc. (NKE): Report for free stock analysis

This article was originally published in Zack's Investment Research (Zacks.com).

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