In the latest close session, Abercrombie & Fitch (ANF) was down 1.57% at $97.46. The stock's performance was behind the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
The teen clothing retailer's stock has dropped by 21.88% in the past month, falling short of the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.56, reflecting a 0.28% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.67 billion, reflecting a 5.54% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.79 per share and a revenue of $5.27 billion, indicating changes of -8.42% and +6.48%, respectively, from the former year.
Any recent changes to analyst estimates for Abercrombie & Fitch should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Right now, Abercrombie & Fitch possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 10.11 right now. Its industry sports an average Forward P/E of 18.81, so one might conclude that Abercrombie & Fitch is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 52, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Abercrombie & Fitch Company (ANF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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