American Eagle Outfitters (AEO) closed at $23.75 in the latest trading session, marking a -0.84% move from the prior day. This move lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Coming into today, shares of the teen clothing retailer had gained 5.41% in the past month. In that same time, the Retail-Wholesale sector lost 3.94%, while the S&P 500 gained 0.22%.
Investors will be hoping for strength from American Eagle Outfitters as it approaches its next earnings release. The company is expected to report EPS of $0.40, up 2.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.54 billion, up 19.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $5.03 billion, which would represent changes of +1010% and +33.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 2.57% lower within the past month. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).
Investors should also note American Eagle Outfitters’s current valuation metrics, including its Forward P/E ratio of 10.77. Its industry sports an average Forward P/E of 12.64, so we one might conclude that American Eagle Outfitters is trading at a discount comparatively.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report
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