Yahoo Finance American Eagle Outfitters (AEO) Increases Despite Market Slip: Here's What You Need to Know
American Eagle Outfitters (AEO) ended the recent trading session at $22.37, demonstrating a +0.31% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 1.15%.
Prior to today's trading, shares of the teen clothing retailer had lost 5.75% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.51% and the S&P 500's loss of 1.09% in that time.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company is predicted to post an EPS of $0.26, indicating a 52.94% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 5.54% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.71 per share and a revenue of $5.43 billion, demonstrating changes of +12.5% and +3.29%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. American Eagle Outfitters is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, American Eagle Outfitters is currently being traded at a Forward P/E ratio of 13.02. Its industry sports an average Forward P/E of 14.45, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
Also, we should mention that AEO has a PEG ratio of 1.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.23.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 175, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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
