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Why Abercrombie & Fitch (ANF) Dipped More Than Broader Market Today

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Abercrombie & Fitch (ANF - Free Report) closed at $95.89 in the latest trading session, marking a -2.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The teen clothing retailer's shares have seen an increase of 9.82% over the last month, surpassing the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68%.

Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.26, reflecting a 9.6% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.18 billion, indicating a 4.45% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.2 per share and revenue of $5.19 billion. These totals would mark changes of -4.58% and +4.83%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Abercrombie & Fitch. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. As of now, Abercrombie & Fitch holds a Zacks Rank of #3 (Hold).

With respect to valuation, Abercrombie & Fitch is currently being traded at a Forward P/E ratio of 9.67. This expresses a discount compared to the average Forward P/E of 17.87 of its industry.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 17% of all 250+ industries.

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.

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


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