American Eagle Outfitters (AEO) closed the most recent trading day at $23.44, moving -2.21% from the previous trading session. This change lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq gained 0.91%.
The teen clothing retailer's shares have seen a decrease of 10.99% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.12% and the S&P 500's gain of 0.38%.
Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is expected to report EPS of $0.7, up 29.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 7.72% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.37 per share and a revenue of $5.46 billion, signifying shifts of -21.26% and +2.49%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 witnessed a 3% increase. As of now, American Eagle Outfitters holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 17.48. This denotes a discount relative to the industry average Forward P/E of 18.63.
Meanwhile, AEO's PEG ratio is currently 7.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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