In the latest trading session, American Eagle Outfitters (AEO) closed at $24.02, marking a -2.56% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1.43%.
The teen clothing retailer's stock has dropped by 8.19% in the past month, falling short of the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. On that day, American Eagle Outfitters is projected to report earnings of $0.7 per share, which would represent year-over-year growth of 29.63%. Alongside, our most recent consensus estimate is anticipating revenue of $1.73 billion, indicating a 7.72% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.37 per share and revenue of $5.46 billion, indicating changes of -21.26% and 0%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, 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. Over the past month, there's been a 6.43% rise in the Zacks Consensus EPS estimate. American Eagle Outfitters is currently a Zacks Rank #1 (Strong Buy).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 14.64. For comparison, its industry has an average Forward P/E of 16.89, which means American Eagle Outfitters is trading at a discount to the group.
We can also see that AEO currently has a PEG ratio of 6.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.94.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
