American Eagle Outfitters (AEO) ended the recent trading session at $17.42, demonstrating a +1.75% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.62%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Coming into today, shares of the teen clothing retailer had lost 1.15% in the past month. In that same time, the Retail-Wholesale sector gained 13.36%, while the S&P 500 gained 12.23%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. The company is predicted to post an EPS of $0.11, indicating a 137.93% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 8.52% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.76 per share and a revenue of $5.78 billion, indicating changes of +17.33% and +5.09%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold).
Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 9.75. This represents a discount compared to its industry average Forward P/E of 16.08.
Meanwhile, AEO's PEG ratio is currently 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.
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.
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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).