In the latest close session, Abercrombie & Fitch (ANF) was down 1.83% at $97.29. This move lagged the S&P 500's daily gain of 2.05%. Meanwhile, the Dow experienced a rise of 2.54%, and the technology-dominated Nasdaq saw an increase of 2.27%.
The teen clothing retailer's shares have seen a decrease of 23.68% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.28% and the S&P 500's loss of 1.49%.
Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. On that day, Abercrombie & Fitch is projected to report earnings of $3.56 per share, which would represent a year-over-year decline of 0.28%. Simultaneously, our latest consensus estimate expects the revenue to be $1.67 billion, showing a 5.32% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.79 per share and a revenue of $5.27 billion, signifying shifts of -8.42% and +6.41%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Abercrombie & Fitch. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.07% higher within the past month. Abercrombie & Fitch is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 9.82. Its industry sports an average Forward P/E of 16.53, 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. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
You can find more information on all of these metrics, and much 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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