Yahoo Finance American Eagle Outfitters (AEO) Stock Slides as Market Rises: Facts to Know Before You Trade
American Eagle Outfitters (AEO) closed at $23.53 in the latest trading session, marking a -0.38% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.12% for the day. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the teen clothing retailer had gained 5.73% over the past month, outpacing the Retail-Wholesale sector's gain of 4.39% and the S&P 500's gain of 4.99% in that time.
The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company's earnings report is expected on May 29, 2024. The company is predicted to post an EPS of $0.27, indicating a 58.82% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 5.93% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.71 per share and revenue of $5.44 billion, which would represent changes of +12.5% and +3.37%, respectively, from the prior year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Currently, American Eagle Outfitters is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 13.78. This represents a discount compared to its industry's average Forward P/E of 16.09.
Investors should also note that AEO has a PEG ratio of 1.1 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.36.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
