American Eagle Outfitters (AEO) closed the most recent trading day at $16.53, moving -1.08% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.17% for the day. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.46%.
Heading into today, shares of the teen clothing retailer had lost 1.36% over the past month, lagging the Retail-Wholesale sector's gain of 0.84% and the S&P 500's gain of 2.38%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. On that day, American Eagle Outfitters is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 12.5%. 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 project earnings of $1.11 per share and a revenue of $5.32 billion, demonstrating changes of -36.21% and -0.15%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 shifted 1.83% upward. As of now, American Eagle Outfitters holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 15.05. This valuation marks a discount compared to its industry average Forward P/E of 17.19.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
