In the latest trading session, Abercrombie & Fitch (ANF) closed at $136.36, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.04%.
Shares of the teen clothing retailer witnessed a loss of 1.4% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.49%, and underperforming the S&P 500's loss of 0.35%.
Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.01, indicating a 27.54% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 5.86% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $11.42 per share and a revenue of $5.52 billion, demonstrating changes of +15.82% and +4.83%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 0.25% higher. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 11.79 right now. For comparison, its industry has an average Forward P/E of 13.88, which means Abercrombie & Fitch is trading at a discount to the group.
Also, we should mention that ANF has a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.18.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).