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Abercrombie & Fitch (ANF) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Abercrombie & Fitch (ANF - Free Report) closed at $66.65, marking a -2.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 1.37%.

Shares of the teen clothing retailer witnessed a loss of 24.66% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.23%, and the S&P 500's gain of 1.08%.

Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.18, indicating a 12.8% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 5.9% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.79 per share and a revenue of $5.27 billion, demonstrating changes of -8.42% and +6.41%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Abercrombie & Fitch. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been a 0.79% fall in the Zacks Consensus EPS estimate. At present, Abercrombie & Fitch boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, Abercrombie & Fitch is currently exchanging hands at a Forward P/E ratio of 7. This valuation marks a discount compared to its industry average Forward P/E of 16.21.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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