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American Eagle Outfitters (AEO) Rises As Market Takes a Dip: Key Facts

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American Eagle Outfitters (AEO - Free Report) closed at $22.93 in the latest trading session, marking a +1.37% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.74%. Elsewhere, the Dow lost 1.53%, while the tech-heavy Nasdaq lost 0.39%.

Shares of the teen clothing retailer have depreciated by 0.04% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.94% and the S&P 500's gain of 6.06%.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2024. On that day, American Eagle Outfitters is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 58.82%. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 6.09% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.71 per share and a revenue of $5.43 billion, indicating changes of +12.5% and +3.24%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).

In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 13.22. This indicates a discount in contrast to its industry's Forward P/E of 16.59.

It is also worth noting that AEO currently has a PEG ratio of 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.55.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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