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Is American Eagle Outfitters (AEO) Stock Outpacing Its Retail-Wholesale Peers This Year?

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is American Eagle Outfitters (AEO) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

American Eagle Outfitters is a member of the Retail-Wholesale sector. This group includes 219 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. AEO is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for AEO's full-year earnings has moved 5.89% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Our latest available data shows that AEO has returned about 21.62% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of -9.16% on a year-to-date basis. As we can see, American Eagle Outfitters is performing better than its sector in the calendar year.

To break things down more, AEO belongs to the Retail - Apparel and Shoes industry, a group that includes 38 individual companies and currently sits at #18 in the Zacks Industry Rank. This group has lost an average of 3.23% so far this year, so AEO is performing better in this area.

Investors in the Retail-Wholesale sector will want to keep a close eye on AEO as it attempts to continue its solid performance.


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Zacks Investment Research