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Here's Why Abercrombie & Fitch (ANF) Fell More Than Broader Market

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Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $139.22, moving -1.53% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.

The stock of teen clothing retailer has fallen by 6.63% in the past month, lagging the Retail-Wholesale sector's loss of 3.19% and the S&P 500's gain of 1.4%.

Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. The company is forecasted to report an EPS of $3.01, showcasing a 27.54% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 5.86% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.42 per share and a revenue of $5.52 billion, signifying shifts of +15.82% and +4.83%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.25% rise in the Zacks Consensus EPS estimate. As of now, Abercrombie & Fitch holds a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Abercrombie & Fitch is holding a Forward P/E ratio of 12.38. This represents a discount compared to its industry average Forward P/E of 14.2.

Also, we should mention that ANF has a PEG ratio of 1.24. 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. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.24 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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