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American Eagle Outfitters (AEO) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $22.83, marking a +1.92% move from the previous day. This move outpaced the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 0.75%.

Heading into today, shares of the teen clothing retailer had lost 11.53% over the past month, lagging the Retail-Wholesale sector's loss of 11.09% and the S&P 500's loss of 7.36% in that time.

Wall Street will be looking for positivity from American Eagle Outfitters as it approaches its next earnings report date. In that report, analysts expect American Eagle Outfitters to post earnings of $0.38 per share. This would mark a year-over-year decline of 2.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, up 18.43% from the year-ago period.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $5.03 billion. These results would represent year-over-year changes of +990% and +33.73%, respectively.

Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 4.66% lower. American Eagle Outfitters is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 10.29. This valuation marks a discount compared to its industry's average Forward P/E of 11.85.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 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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