In the latest close session, American Eagle Outfitters (AEO) was up +2.72% at $10.19. The stock outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
Heading into today, shares of the teen clothing retailer had gained 2.27% over the past month, lagging the Retail-Wholesale sector's gain of 5.04% and the S&P 500's gain of 5.88%.
The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. In that report, analysts expect American Eagle Outfitters to post earnings of $0.2 per share. This would mark a year-over-year decline of 48.72%. In the meantime, our current consensus estimate forecasts the revenue to be $1.23 billion, indicating a 4.49% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $5.19 billion. These totals would mark changes of -52.3% and -2.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. American Eagle Outfitters currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, American Eagle Outfitters is currently being traded at a Forward P/E ratio of 11.95. Its industry sports an average Forward P/E of 17.74, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 194, this industry ranks in the bottom 22% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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