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Here's Why American Eagle Outfitters (AEO) Fell More Than Broader Market
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In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $15.15, marking a -2.7% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.52%, and the technology-centric Nasdaq decreased by 0.08%.
Heading into today, shares of the teen clothing retailer had lost 19.12% over the past month, lagging the Retail-Wholesale sector's loss of 3.47% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. On that day, American Eagle Outfitters is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 12.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 2.19% from the year-ago period.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $5.29 billion. These results would represent year-over-year changes of -37.36% and -0.7%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.32% increase. Right now, American Eagle Outfitters possesses a Zacks Rank of #3 (Hold).
In terms of valuation, American Eagle Outfitters is currently trading at a Forward P/E ratio of 14.28. Its industry sports an average Forward P/E of 17.83, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 AEO in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why American Eagle Outfitters (AEO) Fell More Than Broader Market
In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $15.15, marking a -2.7% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.52%, and the technology-centric Nasdaq decreased by 0.08%.
Heading into today, shares of the teen clothing retailer had lost 19.12% over the past month, lagging the Retail-Wholesale sector's loss of 3.47% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. On that day, American Eagle Outfitters is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 12.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 2.19% from the year-ago period.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.09 per share and revenue of $5.29 billion. These results would represent year-over-year changes of -37.36% and -0.7%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.32% increase. Right now, American Eagle Outfitters possesses a Zacks Rank of #3 (Hold).
In terms of valuation, American Eagle Outfitters is currently trading at a Forward P/E ratio of 14.28. Its industry sports an average Forward P/E of 17.83, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 AEO in the coming trading sessions, be sure to utilize Zacks.com.