American Eagle Outfitters (AEO) closed the most recent trading day at $24.57, moving -1.36% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.43% for the day. On the other hand, the Dow registered a loss of 1.05%, and the technology-centric Nasdaq decreased by 0.92%.
Coming into today, shares of the teen clothing retailer had gained 6.86% in the past month. In that same time, the Retail-Wholesale sector lost 5.44%, while the S&P 500 lost 0.5%.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company's earnings report is expected on March 4, 2026. The company's upcoming EPS is projected at $0.71, signifying a 31.48% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.73 billion, showing a 7.9% escalation compared to the year-ago quarter.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $5.46 billion. These results would represent year-over-year changes of -20.69% and +2.55%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.89% increase. As of now, American Eagle Outfitters holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 14.67. This expresses a discount compared to the average Forward P/E of 19.61 of its industry.
One should further note that AEO currently holds a PEG ratio of 6.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 13% of over 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.
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
