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American Eagle Outfitters (AEO) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest close session, American Eagle Outfitters (AEO - Free Report) was down 1.69% at $17.48. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.25%.

The teen clothing retailer's shares have seen an increase of 16.28% over the last month, surpassing the Retail-Wholesale sector's gain of 5.47% and the S&P 500's gain of 4.36%.

The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company is slated to reveal its earnings on December 2, 2025. On that day, American Eagle Outfitters is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 10.42%. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 2.29% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.11 per share and a revenue of $5.32 billion, representing changes of -36.21% and -0.15%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. American Eagle Outfitters currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, American Eagle Outfitters is currently exchanging hands at a Forward P/E ratio of 15.98. This represents a discount compared to its industry average Forward P/E of 19.01.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% 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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