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American Eagle Outfitters (AEO) Exceeds Market Returns: Some Facts to Consider
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American Eagle Outfitters (AEO - Free Report) closed at $16.68 in the latest trading session, marking a +2.21% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Coming into today, shares of the teen clothing retailer had lost 6.9% in the past month. In that same time, the Retail-Wholesale sector gained 0.24%, while the S&P 500 gained 1.13%.
The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company's earnings per share (EPS) are projected to be $0.21, reflecting a 53.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 6.45% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $5.81 billion. These totals would mark changes of +17.33% and +5.66%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold).
Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 9.27. This indicates a discount in contrast to its industry's Forward P/E of 16.12.
Also, we should mention that AEO has a PEG ratio of 3.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.18.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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American Eagle Outfitters (AEO) Exceeds Market Returns: Some Facts to Consider
American Eagle Outfitters (AEO - Free Report) closed at $16.68 in the latest trading session, marking a +2.21% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Coming into today, shares of the teen clothing retailer had lost 6.9% in the past month. In that same time, the Retail-Wholesale sector gained 0.24%, while the S&P 500 gained 1.13%.
The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company's earnings per share (EPS) are projected to be $0.21, reflecting a 53.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 6.45% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $5.81 billion. These totals would mark changes of +17.33% and +5.66%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold).
Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 9.27. This indicates a discount in contrast to its industry's Forward P/E of 16.12.
Also, we should mention that AEO has a PEG ratio of 3.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.18.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.