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Abercrombie & Fitch (ANF) Stock Dips While Market Gains: Key Facts

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In the latest close session, Abercrombie & Fitch (ANF - Free Report) was down 1.39% at $84.48. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.28%.

The stock of teen clothing retailer has fallen by 8.35% in the past month, lagging the Retail-Wholesale sector's gain of 1.34% and the S&P 500's gain of 4.83%.

Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. It is anticipated that the company will report an EPS of $2.21, marking a 11.6% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.28 billion, indicating a 5.98% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $9.87 per share and a revenue of $5.26 billion, demonstrating changes of -7.67% and +6.3%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.34% lower within the past month. As of now, Abercrombie & Fitch holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Abercrombie & Fitch is currently exchanging hands at a Forward P/E ratio of 8.68. This valuation marks a discount compared to its industry average Forward P/E of 17.95.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.

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.

To follow ANF in the coming trading sessions, be sure to utilize Zacks.com.


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