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Abercrombie & Fitch (ANF) Dips More Than Broader Markets: What You Should Know

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Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $40.01, moving -1.89% from the previous trading session. This move lagged the S&P 500's daily loss of 0.87%.

Heading into today, shares of the teen clothing retailer had gained 2.33% over the past month, outpacing the Retail-Wholesale sector's gain of 1.76% and the S&P 500's gain of 1.61% in that time.

ANF will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2021. The company is expected to report EPS of -$0.48, up 85.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $677.27 million, up 39.54% from the year-ago period.

ANF's full-year Zacks Consensus Estimates are calling for earnings of $1.42 per share and revenue of $3.5 billion. These results would represent year-over-year changes of +294.52% and +11.91%, respectively.

Any recent changes to analyst estimates for ANF should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.24% higher. ANF currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note ANF's current valuation metrics, including its Forward P/E ratio of 28.7. Its industry sports an average Forward P/E of 24.43, so we one might conclude that ANF is trading at a premium comparatively.

Also, we should mention that ANF has a PEG ratio of 1.59. 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. The Retail - Apparel and Shoes was holding an average PEG ratio of 2.53 at yesterday's closing price.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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