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American Eagle Outfitters (AEO) Stock Sinks As Market Gains: What You Should Know

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American Eagle Outfitters (AEO - Free Report) closed at $9.83 in the latest trading session, marking a -2.19% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.26%.

The teen clothing retailer's shares have seen an increase of 2.55% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.51%.

The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. In that report, analysts expect American Eagle Outfitters to post earnings of $0.2 per share. This would mark a year-over-year decline of 48.72%. Meanwhile, our latest consensus estimate is calling for revenue of $1.23 billion, down 4.49% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $5.19 billion, representing changes of -52.3% and -2.57%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, American Eagle Outfitters possesses a Zacks Rank of #5 (Strong Sell).

In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 12.11. This indicates a discount in contrast to its industry's Forward P/E of 17.71.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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