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American Eagle Outfitters (AEO) Outpaces Stock Market Gains: What You Should Know

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American Eagle Outfitters (AEO - Free Report) closed the most recent trading day at $35.23, moving +1.85% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.82%.

Coming into today, shares of the teen clothing retailer had lost 3.68% in the past month. In that same time, the Retail-Wholesale sector gained 0.05%, while the S&P 500 gained 3.89%.

AEO will be looking to display strength as it nears its next earnings release. In that report, analysts expect AEO to post earnings of $0.52 per share. This would mark year-over-year growth of 1833.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 35.94% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.08 per share and revenue of $4.97 billion, which would represent changes of +940% and +32.25%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AEO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.74% higher within the past month. AEO is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note AEO's current valuation metrics, including its Forward P/E ratio of 16.63. For comparison, its industry has an average Forward P/E of 16.26, which means AEO is trading at a premium to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.

You can find more information on all of these metrics, and much more, on

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