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Abercrombie & Fitch (ANF) Outpaces Stock Market Gains: What You Should Know

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Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $151.72, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow saw an upswing of 1.08%, while the tech-heavy Nasdaq appreciated by 0.08%.

Heading into today, shares of the teen clothing retailer had gained 7.04% over the past month, outpacing the Retail-Wholesale sector's gain of 0.37% and the S&P 500's gain of 1.41%.

Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is expected to report EPS of $3.01, up 27.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, up 5.86% from the prior-year quarter.

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.

It's also important for investors to be aware of any recent modifications to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 13.11 right now. This signifies a discount in comparison to the average Forward P/E of 14.08 for its industry.

One should further note that ANF currently holds a PEG ratio of 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 153, placing it within the bottom 38% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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