We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Eagle Outfitters (AEO) Suffers a Larger Drop Than the General Market: Key Insights
Read MoreHide Full Article
American Eagle Outfitters (AEO - Free Report) closed the most recent trading day at $21.48, moving -1.24% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw a decrease of 0.74%.
Shares of the teen clothing retailer have appreciated by 20.36% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 6.47%, and the S&P 500's loss of 3.31%.
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 $0.49 per share. This would mark a year-over-year decline of 7.55%. Simultaneously, our latest consensus estimate expects the revenue to be $1.46 billion, showing a 6.83% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.24 per share and a revenue of $5.86 billion, indicating changes of +49.33% and +6.63%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 9.73. Its industry sports an average Forward P/E of 15.77, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
We can also see that AEO currently has a PEG ratio of 4.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEO's industry had an average PEG ratio of 1.34 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AEO in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
American Eagle Outfitters (AEO) Suffers a Larger Drop Than the General Market: Key Insights
American Eagle Outfitters (AEO - Free Report) closed the most recent trading day at $21.48, moving -1.24% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw a decrease of 0.74%.
Shares of the teen clothing retailer have appreciated by 20.36% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 6.47%, and the S&P 500's loss of 3.31%.
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 $0.49 per share. This would mark a year-over-year decline of 7.55%. Simultaneously, our latest consensus estimate expects the revenue to be $1.46 billion, showing a 6.83% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.24 per share and a revenue of $5.86 billion, indicating changes of +49.33% and +6.63%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 9.73. Its industry sports an average Forward P/E of 15.77, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.
We can also see that AEO currently has a PEG ratio of 4.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AEO's industry had an average PEG ratio of 1.34 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AEO in the coming trading sessions, be sure to utilize Zacks.com.