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Abercrombie & Fitch (ANF) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Abercrombie & Fitch (ANF - Free Report) closed at $128.42, marking a -0.74% move from the previous day. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.1%.

Shares of the teen clothing retailer have appreciated by 8.34% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.98% and the S&P 500's loss of 0.35%.

The investment community will be paying close attention to the earnings performance of Abercrombie & Fitch in its upcoming release. The company is slated to reveal its earnings on May 29, 2024. In that report, analysts expect Abercrombie & Fitch to post earnings of $1.53 per share. This would mark year-over-year growth of 292.31%. Alongside, our most recent consensus estimate is anticipating revenue of $930.42 million, indicating a 11.29% upward movement from the same quarter last year.

ANF's full-year Zacks Consensus Estimates are calling for earnings of $7.52 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +19.75% and +5.64%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. At present, Abercrombie & Fitch boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Abercrombie & Fitch is presently being traded at a Forward P/E ratio of 17.21. This denotes a premium relative to the industry's average Forward P/E of 15.68.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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