Back to top

Image: Bigstock

American Eagle Outfitters (AEO) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

American Eagle Outfitters (AEO - Free Report) ended the recent trading session at $10.85, demonstrating a +1.97% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.04%.

Shares of the teen clothing retailer have depreciated by 3.01% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 12.79% and the S&P 500's gain of 13.42%.

Market participants will be closely following the financial results of American Eagle Outfitters in its upcoming release. The company plans to announce its earnings on May 29, 2025. The company is expected to report EPS of -$0.19, down 155.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, down 4.6% from the year-ago period.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.01 per share and revenue of $5.22 billion. These results would represent year-over-year changes of -41.95% and -2.01%, respectively.

Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 32.39% lower. American Eagle Outfitters is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 10.52. For comparison, its industry has an average Forward P/E of 15.78, which means American Eagle Outfitters is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 45% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Eagle Outfitters, Inc. (AEO) - free report >>

Published in