American Eagle Outfitters (AEO) ended the recent trading session at $16.55, demonstrating a +0.91% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.53% gain on the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.25%.
Shares of the teen clothing retailer have depreciated by 1.62% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.57% and the S&P 500's gain of 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.50, reflecting a 18.03% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.61 billion, indicating a 3.95% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.70 per share and a revenue of $5.34 billion, demonstrating changes of +11.84% and +1.42%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.27% higher. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Eagle Outfitters has a Forward P/E ratio of 9.65 right now. This indicates a discount in contrast to its industry's Forward P/E of 16.07.
Meanwhile, AEO's PEG ratio is currently 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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