American Eagle Outfitters (AEO) closed the most recent trading day at $25.14, moving -3.31% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.91%.
Shares of the teen clothing retailer witnessed a loss of 2.44% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.28%, and the S&P 500's gain of 0.71%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company's upcoming EPS is projected at $0.71, signifying a 31.48% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 7.72% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.38 per share and revenue of $5.47 billion. These totals would mark changes of -20.69% and +2.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.5% higher within the past month. American Eagle Outfitters presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Eagle Outfitters is currently trading at a Forward P/E ratio of 18.86. This represents a premium compared to its industry average Forward P/E of 18.81.
We can also see that AEO currently has a PEG ratio of 8.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 2.11 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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