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This trend has been acting as a tailwind for many players in the athletic footwear and apparel industry. While the abovementioned factors boost confidence, Nikes top line raises concern. The companys top line has been missing estimates for quite some time due to adverse currency movements. Moreover, its future orders witnessed a considerable slowdown and lagged expectations in the fourth quarter of fiscal 2016. Further, the company faces intense competition in both domestic and international markets from local as well as established players, such as Adidas AG ADDYY (including Reebok) and Puma. Going forward, the company expects lingering currency woes to strongly hurt revenues in the first half of fiscal 2017. Moreover, estimates have been witnessing a downtrend. Over the past 90 days, the Zacks Consensus Estimate of $2.39 and $2.73 for fiscal 2017 and fiscal 2018 has decreased 5 cents and 7 cents, respectively. However, estimates have been stable ahead of the companys first-quarter earnings release. Given the pros and cons embedded in the stock, Nike currently carries a Zacks Rank #3 (Hold). Stocks that Warrant a Look Some better-ranked stocks in the same industry include Deckers Outdoor Corp.

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