American Eagle Outfitters (AEO) closed the latest trading day at $11.04, indicating a -1.43% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
Shares of the teen clothing retailer have depreciated by 1.93% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.11, marking a 67.65% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, down 5.35% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.50 per share and a revenue of $5.22 billion, indicating changes of -13.79% and -1.98%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% higher. American Eagle Outfitters is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, American Eagle Outfitters is currently being traded at a Forward P/E ratio of 7.49. Its industry sports an average Forward P/E of 13.24, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
We can also see that AEO currently has a PEG ratio of 0.8. 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 currently had an average PEG ratio of 1.34 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 160, this industry ranks in the bottom 36% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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