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Abercrombie & Fitch (ANF) Outpaces Stock Market Gains: What You Should Know

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Abercrombie & Fitch (ANF - Free Report) closed at $39.62 in the latest trading session, marking a +1.49% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.24%.

Coming into today, shares of the teen clothing retailer had lost 15.57% in the past month. In that same time, the Retail-Wholesale sector gained 0.22%, while the S&P 500 gained 4.09%.

ANF will be looking to display strength as it nears its next earnings release. In that report, analysts expect ANF to post earnings of $0.68 per share. This would mark year-over-year growth of 195.65%. Meanwhile, our latest consensus estimate is calling for revenue of $865.1 million, up 23.88% from the prior-year quarter.

ANF's full-year Zacks Consensus Estimates are calling for earnings of $3.30 per share and revenue of $3.73 billion. These results would represent year-over-year changes of +552.05% and +19.39%, respectively.

Investors should also note any recent changes to analyst estimates for ANF. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.49% higher within the past month. ANF is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that ANF has a Forward P/E ratio of 11.81 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.54.

Also, we should mention that ANF has a PEG ratio of 0.66. 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 industry currently had an average PEG ratio of 1.22 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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