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

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American Eagle Outfitters (AEO - Free Report) closed at $12.03 in the latest trading session, marking a -1.64% move from the prior day. This change lagged the S&P 500's 0.13% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the teen clothing retailer had lost 5.34% in the past month. In that same time, the Retail-Wholesale sector gained 8.19%, while the S&P 500 gained 5.55%.

American Eagle Outfitters will be looking to display strength as it nears its next earnings release. On that day, American Eagle Outfitters is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 71.67%. Our most recent consensus estimate is calling for quarterly revenue of $1.22 billion, up 2.32% from the year-ago period.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.29 per share and revenue of $5.14 billion. These results would represent year-over-year changes of -41.1% and +2.48%, respectively.

Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.79% lower. American Eagle Outfitters is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 9.46. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.46.

Also, we should mention that AEO has a PEG ratio of 0.82. 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 0.82 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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