Back to top

Image: Bigstock

Here's Why American Eagle Outfitters (AEO) Fell More Than Broader Market

Read MoreHide Full Article

In the latest close session, American Eagle Outfitters (AEO - Free Report) was down 2.72% at $12.50. The stock's change was less than the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.22%.

Shares of the teen clothing retailer have appreciated by 9.45% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.21%, and the S&P 500's gain of 2.65%.

The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. The company is scheduled to release its earnings on September 3, 2025. The company's upcoming EPS is projected at $0.2, signifying a 48.72% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.23 billion, down 4.8% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.81 per share and a revenue of $5.19 billion, signifying shifts of -53.45% and -2.56%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.77% decrease. American Eagle Outfitters is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 15.96. This represents a discount compared to its industry average Forward P/E of 17.97.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 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.

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


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