In the latest trading session, American Eagle Outfitters (AEO) closed at $17.36, marking a -1.03% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Prior to today's trading, shares of the teen clothing retailer had lost 1.41% lagged the Retail-Wholesale sector's gain of 1.33% and the S&P 500's loss of 0.63%.
Market participants will be closely following the financial results of American Eagle Outfitters in its upcoming release. The company's upcoming EPS is projected at $0.21, signifying a 53.33% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.37 billion, showing a 6.45% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.76 per share and a revenue of $5.81 billion, signifying shifts of +17.33% and +5.66%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.39% lower within the past month. American Eagle Outfitters is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Eagle Outfitters has a Forward P/E ratio of 9.96 right now. This signifies a discount in comparison to the average Forward P/E of 16.53 for its industry.
Meanwhile, AEO's PEG ratio is currently 3.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.23.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant 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 Report
This article originally published on Zacks Investment Research (zacks.com).