American Eagle Outfitters (AEO) closed at $19.17 in the latest trading session, marking a -1.29% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the teen clothing retailer had gained 12.58% outpaced the Retail-Wholesale sector's gain of 7.33% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.11, signifying a 137.93% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 8.52% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $5.78 billion, representing changes of +17.33% and +5.19%, respectively, from the prior year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has shifted 0.67% upward. American Eagle Outfitters presently features a Zacks Rank of #3 (Hold).
In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 11.02. Its industry sports an average Forward P/E of 15.96, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
Investors should also note that AEO has a PEG ratio of 1.38 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 27% of all 250+ industries.
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 Report
This article originally published on Zacks Investment Research (zacks.com).