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American Eagle Outfitters (AEO) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $18.19, marking a -2.78% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.89%.
The teen clothing retailer's shares have seen an increase of 13.26% over the last month, surpassing the Retail-Wholesale sector's gain of 13.14% and the S&P 500's gain of 9.71%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. In that report, analysts expect American Eagle Outfitters to post earnings of $0.11 per share. This would mark year-over-year growth of 137.93%. Simultaneously, our latest consensus estimate expects the revenue to be $1.18 billion, showing a 8.52% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $5.78 billion. These totals would mark changes of +17.33% and +5.19%, respectively, from last year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has remained steady. American Eagle Outfitters is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, American Eagle Outfitters is currently being traded at a Forward P/E ratio of 10.62. This valuation marks a discount compared to its industry average Forward P/E of 17.01.
Investors should also note that AEO has a PEG ratio of 1.33 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEO's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Eagle Outfitters (AEO) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $18.19, marking a -2.78% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.89%.
The teen clothing retailer's shares have seen an increase of 13.26% over the last month, surpassing the Retail-Wholesale sector's gain of 13.14% and the S&P 500's gain of 9.71%.
The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. In that report, analysts expect American Eagle Outfitters to post earnings of $0.11 per share. This would mark year-over-year growth of 137.93%. Simultaneously, our latest consensus estimate expects the revenue to be $1.18 billion, showing a 8.52% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $5.78 billion. These totals would mark changes of +17.33% and +5.19%, respectively, from last year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has remained steady. American Eagle Outfitters is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, American Eagle Outfitters is currently being traded at a Forward P/E ratio of 10.62. This valuation marks a discount compared to its industry average Forward P/E of 17.01.
Investors should also note that AEO has a PEG ratio of 1.33 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEO's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.