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Abercrombie & Fitch (ANF) Outperforms Broader Market: What You Need to Know

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Abercrombie & Fitch (ANF - Free Report) closed at $91.60 in the latest trading session, marking a +1.95% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.83%. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.02%.

The stock of teen clothing retailer has risen by 18.18% in the past month, leading the Retail-Wholesale sector's gain of 2.23% and the S&P 500's gain of 4.99%.

Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.25, showcasing a 10% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.18 billion, up 4.12% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.17 per share and a revenue of $5.18 billion, demonstrating changes of -4.86% and +4.69%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Abercrombie & Fitch. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Abercrombie & Fitch is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Abercrombie & Fitch is currently being traded at a Forward P/E ratio of 8.83. This valuation marks a discount compared to its industry average Forward P/E of 17.55.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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