American Eagle Outfitters (AEO) closed the most recent trading day at $19.54, moving -1.06% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.37% for the day. Meanwhile, the Dow experienced a drop of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.83%.
Prior to today's trading, shares of the teen clothing retailer had gained 9.06% outpaced the Retail-Wholesale sector's gain of 6.26% and the S&P 500's loss of 2.29%.
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 $0.49, signifying a 7.55% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.46 billion, up 6.83% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $5.86 billion. These totals would mark changes of +49.33% and +9.75%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. American Eagle Outfitters is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Eagle Outfitters has a Forward P/E ratio of 8.83 right now. This represents a discount compared to its industry average Forward P/E of 15.29.
Investors should also note that AEO has a PEG ratio of 4.51 right now. 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 of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.36.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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).