Abercrombie & Fitch (ANF) closed the most recent trading day at $100.31, moving -1.12% from the previous trading session. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1.43%.
Heading into today, shares of the teen clothing retailer had lost 18.36% over the past month, lagging the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
The investment community will be paying close attention to the earnings performance of Abercrombie & Fitch in its upcoming release. It is anticipated that the company will report an EPS of $3.56, marking a 0.28% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.67 billion, indicating a 5.32% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.79 per share and revenue of $5.27 billion. These totals would mark changes of -8.42% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 1.07% upward. Abercrombie & Fitch is currently a Zacks Rank #3 (Hold).
In terms of valuation, Abercrombie & Fitch is currently trading at a Forward P/E ratio of 10.06. Its industry sports an average Forward P/E of 16.89, 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. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 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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