Yahoo Finance Why the Market Dipped But American Eagle Outfitters (AEO) Gained Today
American Eagle Outfitters (AEO) closed the latest trading day at $22.94, indicating a +1.37% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.46%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 0.64%.
The the stock of teen clothing retailer has fallen by 9.98% in the past month, lagging the Retail-Wholesale sector's loss of 3.05% and the S&P 500's loss of 3.04%.
Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is expected to report EPS of $0.26, up 52.94% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing a 5.54% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.71 per share and a revenue of $5.43 billion, signifying shifts of +12.5% and +3.29%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, American Eagle Outfitters boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Eagle Outfitters is currently trading at a Forward P/E ratio of 13.21. Its industry sports an average Forward P/E of 14.82, 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 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.33.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
