American Eagle Outfitters (AEO) closed the most recent trading day at $15.71, moving +1.49% from the previous trading session. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq lost 0.16%.
The teen clothing retailer's shares have seen a decrease of 13.76% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.79% and the S&P 500's gain of 1.16%.
Market participants will be closely following the financial results of American Eagle Outfitters in its upcoming release. The company is predicted to post an EPS of $0.42, indicating a 12.5% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.32 billion, up 2.19% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.11 per share and revenue of $5.32 billion, which would represent changes of -36.21% and -0.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.83% higher. Right now, American Eagle Outfitters possesses a Zacks Rank of #2 (Buy).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 13.95. For comparison, its industry has an average Forward P/E of 16.29, which means American Eagle Outfitters is trading at a discount to the group.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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