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Has American Eagle Outfitters (AEO) Outpaced Other Retail-Wholesale Stocks This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. American Eagle Outfitters (AEO - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

American Eagle Outfitters is a member of our Retail-Wholesale group, which includes 218 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. American Eagle Outfitters is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for AEO's full-year earnings has moved 11.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, AEO has moved about 8.6% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 7.8%. This means that American Eagle Outfitters is outperforming the sector as a whole this year.

Another stock in the Retail-Wholesale sector, Carrols Restaurant Group (TAST - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.7%.

For Carrols Restaurant Group, the consensus EPS estimate for the current year has increased 36.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, American Eagle Outfitters is a member of the Retail - Apparel and Shoes industry, which includes 42 individual companies and currently sits at #166 in the Zacks Industry Rank. On average, this group has gained an average of 12.8% so far this year, meaning that AEO is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Carrols Restaurant Group falls under the Retail - Restaurants industry. Currently, this industry has 42 stocks and is ranked #150. Since the beginning of the year, the industry has moved +3%.

Investors with an interest in Retail-Wholesale stocks should continue to track American Eagle Outfitters and Carrols Restaurant Group. These stocks will be looking to continue their solid performance.


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