In the latest trading session, American Eagle Outfitters (AEO) closed at $12.58, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 0.3%.
The stock of teen clothing retailer has risen by 25.66% in the past month, leading the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 2.71%.
Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. On that day, American Eagle Outfitters is projected to report earnings of $0.2 per share, which would represent a year-over-year decline of 48.72%. At the same time, our most recent consensus estimate is projecting a revenue of $1.23 billion, reflecting a 4.55% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $5.19 billion. These totals would mark changes of -52.3% and -2.56%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. At present, American Eagle Outfitters boasts a Zacks Rank of #4 (Sell).
Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 15.03. This valuation marks a discount compared to its industry average Forward P/E of 16.93.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons 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.
