The latest trading session saw American Eagle Outfitters (AEO) ending at $10.73, denoting a -0.09% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 2.36%. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.
The teen clothing retailer's stock has dropped by 11.39% in the past month, falling short of the Retail-Wholesale sector's loss of 4.2% and the S&P 500's loss of 5.6%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company is predicted to post an EPS of $0.11, indicating a 67.65% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 5.35% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.50 per share and a revenue of $5.22 billion, indicating changes of -13.79% and -1.98%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 1.8% lower. American Eagle Outfitters is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 7.18. This expresses a discount compared to the average Forward P/E of 12.6 of its industry.
It is also worth noting that AEO currently has a PEG ratio of 0.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 43% 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.
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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