Abercrombie & Fitch (ANF) ended the recent trading session at $95.24, demonstrating a -2.19% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.01% for the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 1.4%.
The teen clothing retailer's stock has climbed by 11.61% in the past month, exceeding the Retail-Wholesale sector's gain of 0.78% and the S&P 500's gain of 0.32%.
The investment community will be paying close attention to the earnings performance of Abercrombie & Fitch in its upcoming release. The company is expected to report EPS of $1.9, down 18.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.24 billion, up 2.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.46 per share and revenue of $5.43 billion, which would represent changes of +6.09% and +3.18%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.43% lower. Abercrombie & Fitch presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 9.31. This signifies a discount in comparison to the average Forward P/E of 16.59 for its industry.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).