Nike (NKE) closed the latest trading day at $77.19, indicating a -1.11% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 0.33%.

Heading into today, shares of the athletic apparel maker had lost 5.09% over the past month, lagging the Consumer Discretionary sector's gain of 2.26% and the S&P 500's gain of 0.41% in that time.

Market participants will be closely following the financial results of Nike in its upcoming release. It is anticipated that the company will report an EPS of $0.64, marking a 37.86% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.18 billion, indicating a 9.01% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.74 per share and revenue of $47.48 billion, indicating changes of -30.63% and -7.55%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Nike. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 2.26% fall in the Zacks Consensus EPS estimate. Right now, Nike possesses a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Nike has a Forward P/E ratio of 28.45 right now. Its industry sports an average Forward P/E of 16.53, so one might conclude that Nike is trading at a premium comparatively.

It's also important to note that NKE currently trades at a PEG ratio of 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Shoes and Retail Apparel stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Shoes and Retail Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 43% of all industries, numbering over 250.