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American Eagle Outfitters (AEO) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, American Eagle Outfitters (AEO - Free Report) was up +2.96% at $19.10. The stock's performance was ahead of the S&P 500's daily gain of 1.55%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 2.69%.

Heading into today, shares of the teen clothing retailer had gained 11.95% over the past month, outpacing the Retail-Wholesale sector's loss of 3.56% and the S&P 500's loss of 1.8%.

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. The company is forecasted to report an EPS of $0.43, showcasing a 10.42% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.32 billion, indicating a 2.33% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.13 per share and a revenue of $5.32 billion, demonstrating changes of -35.06% and -0.12%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 moved 1.54% higher. American Eagle Outfitters is currently a Zacks Rank #2 (Buy).

From a valuation perspective, American Eagle Outfitters is currently exchanging hands at a Forward P/E ratio of 16.46. This denotes a discount relative to the industry average Forward P/E of 18.67.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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