Retail apparel companies are a highlight of this week’s earnings lineup with American Eagle Outfitters (AEO) and Abercrombie & Fitch (ANF) standing out ahead of their third quarter reports on Tuesday, November 21.
With American Eagle’s stock boasting a Zacks Rank #1 (Strong Buy) and Abercrombie’s stock sporting a Zacks Rank #2 (Buy) here is a glimpse at their Q3 previews and why they are worthy of investors' consideration at the moment.
American Eagle Q3 Preview: Ahead of its Q3 report, American Eagle’s stock stands out in terms of growth and value with the company becoming somewhat of a fashionista of casual apparel, footwear, and accessories for Generation Z and younger Millennials in the United States and Canada.
Third quarter earnings are expected to rise 14% year over year to $0.48 per share with Q3 sales forecasted at $1.28 billion and up 3%. More intriguing, the Zacks ESP (Expected Surprise Prediction) indicates American Eagle may be able to surpass earnings expectations with the Most Accurate Estimate having Q3 EPS at $0.50 a share and 4% above the Zacks Consensus.
It’s also noteworthy that American Eagle most recently beat the Zacks Consensus for Q2 EPS by 66% with earnings at $0.25 per share compared to estimates of $0.15 a share. Furthermore, American Eagle’s stock has soared +40% year to date but still trades at a reasonable 14.7X forward earnings multiple. This is very compelling considering the company’s intriguing quarterly growth and generous 2.04% annual dividend yield.
Abercrombie & Fitch Q3 Preview: With inflationary headwinds starting to subside the post-pandemic growth and recovery of Abercrombie is hard to overlook as a staple of premium casual apparel with a global footprint that includes 759 stores across North America, Europe, Asia, and the Middle East.
To that point, Q3 earnings are expected at $1.14 per share compared to $0.01 a share in the prior-year quarter. Quarterly sales are forecasted to be up 11% to $977.52 million. Plus, the Zacks ESP indicates Abercrombie could also beat earnings expectations with the Most Accurate Estimate having Q3 EPS at $1.17 a share and 2% above the Zacks Consensus.
Abercrombie most recently crushed Q2 earnings expectations with EPS coming in at $1.10 per share versus estimates of $0.13 a share. Correlating with its strengthening outlook, Abercrombie's stock has now skyrocketed +217% this year but still trades reasonably at 16.1X forward earnings.
Other Retail Apparel Stocks to Watch
Guess (GES), Nordstrom (JWN), and Urban Outfitters (URBN) are three other retail apparel stocks to watch ahead of their Q3 reports on Tuesday.
The growth and valuation for Guess, Nordstrom, and Urban Outfitters are also attractive with all three stocks landing a Zacks Rank #3 (Hold) as their quarterly results may largely dictate more upside.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Retail apparel companies are a highlight of this week’s earnings lineup with American Eagle Outfitters (AEO) and Abercrombie & Fitch (ANF) standing out ahead of their third quarter reports on Tuesday, November 21.
With American Eagle’s stock boasting a Zacks Rank #1 (Strong Buy) and Abercrombie’s stock sporting a Zacks Rank #2 (Buy) here is a glimpse at their Q3 previews and why they are worthy of investors' consideration at the moment.
American Eagle Q3 Preview: Ahead of its Q3 report, American Eagle’s stock stands out in terms of growth and value with the company becoming somewhat of a fashionista of casual apparel, footwear, and accessories for Generation Z and younger Millennials in the United States and Canada.
Third quarter earnings are expected to rise 14% year over year to $0.48 per share with Q3 sales forecasted at $1.28 billion and up 3%. More intriguing, the Zacks ESP (Expected Surprise Prediction) indicates American Eagle may be able to surpass earnings expectations with the Most Accurate Estimate having Q3 EPS at $0.50 a share and 4% above the Zacks Consensus.
It’s also noteworthy that American Eagle most recently beat the Zacks Consensus for Q2 EPS by 66% with earnings at $0.25 per share compared to estimates of $0.15 a share. Furthermore, American Eagle’s stock has soared +40% year to date but still trades at a reasonable 14.7X forward earnings multiple. This is very compelling considering the company’s intriguing quarterly growth and generous 2.04% annual dividend yield.
Abercrombie & Fitch Q3 Preview: With inflationary headwinds starting to subside the post-pandemic growth and recovery of Abercrombie is hard to overlook as a staple of premium casual apparel with a global footprint that includes 759 stores across North America, Europe, Asia, and the Middle East.
To that point, Q3 earnings are expected at $1.14 per share compared to $0.01 a share in the prior-year quarter. Quarterly sales are forecasted to be up 11% to $977.52 million. Plus, the Zacks ESP indicates Abercrombie could also beat earnings expectations with the Most Accurate Estimate having Q3 EPS at $1.17 a share and 2% above the Zacks Consensus.
Abercrombie most recently crushed Q2 earnings expectations with EPS coming in at $1.10 per share versus estimates of $0.13 a share. Correlating with its strengthening outlook, Abercrombie's stock has now skyrocketed +217% this year but still trades reasonably at 16.1X forward earnings.
Other Retail Apparel Stocks to Watch
Guess (GES), Nordstrom (JWN), and Urban Outfitters (URBN) are three other retail apparel stocks to watch ahead of their Q3 reports on Tuesday.
The growth and valuation for Guess, Nordstrom, and Urban Outfitters are also attractive with all three stocks landing a Zacks Rank #3 (Hold) as their quarterly results may largely dictate more upside.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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