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In the latest market close, American Eagle Outfitters (AEO) reached $20.71, with a +0.78% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 0.87%.
Shares of the teen clothing retailer witnessed a gain of 3.89% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.56% and the S&P 500's gain of 4.87%.
The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 4.08% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.31 billion, indicating a 0.45% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.78 per share and revenue of $5.39 billion, indicating changes of +17.11% and +2.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.16% higher. Currently, American Eagle Outfitters is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 11.55. This represents a discount compared to its industry's average Forward P/E of 15.8.
It's also important to note that AEO currently trades at a PEG ratio of 1.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.92.