In the latest close session, American Eagle Outfitters (AEO) was up +1.87% at $16.88. This move outpaced the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 1.86%.
Shares of the teen clothing retailer witnessed a loss of 7.69% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.39%, and the S&P 500's gain of 2.45%.
Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.42, reflecting a 12.5% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 2.19% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.11 per share and revenue of $5.32 billion, indicating changes of -36.21% and -0.15%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.83% rise in the Zacks Consensus EPS estimate. At present, American Eagle Outfitters boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 14.93. This represents a discount compared to its industry average Forward P/E of 17.59.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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