In the latest close session, Abercrombie & Fitch (ANF) was up +1.49% at $103.49. The stock outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 0.83%.
Shares of the teen clothing retailer have appreciated by 16.83% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.96%, and the S&P 500's gain of 0.8%.
The investment community will be closely monitoring the performance of Abercrombie & Fitch in its forthcoming earnings report. The company is predicted to post an EPS of $1.29, indicating a 18.87% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.12 billion, indicating a 2.27% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.71 per share and revenue of $5.49 billion, indicating changes of +8.62% and +4.28%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Abercrombie & Fitch is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Abercrombie & Fitch is presently being traded at a Forward P/E ratio of 9.53. This indicates a discount in contrast to its industry's Forward P/E of 16.33.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).