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Abercrombie & Fitch (ANF) Dips More Than Broader Markets: What You Should Know

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Abercrombie & Fitch (ANF - Free Report) closed at $29.96 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.45% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.

Heading into today, shares of the teen clothing retailer had gained 14.41% over the past month, outpacing the Retail-Wholesale sector's gain of 4.73% and the S&P 500's gain of 2.62% in that time.

Wall Street will be looking for positivity from ANF as it approaches its next earnings report date. The company is expected to report EPS of -$0.44, up 21.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $733.19 million, up 0.31% from the year-ago period.

ANF's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $3.68 billion. These results would represent year-over-year changes of +20.87% and +2.38%, respectively.

Any recent changes to analyst estimates for ANF should also be noted by investors. 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 company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ANF currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that ANF has a Forward P/E ratio of 21.93 right now. For comparison, its industry has an average Forward P/E of 13.82, which means ANF is trading at a premium to the group.

Meanwhile, ANF's PEG ratio is currently 1.44. 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. ANF's industry had an average PEG ratio of 1.36 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 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow ANF in the coming trading sessions, be sure to utilize Zacks.com.




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