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American Eagle Outfitters (AEO) Gains As Market Dips: What You Should Know
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American Eagle Outfitters (AEO - Free Report) closed at $17.50 in the latest trading session, marking a +0.17% move from the prior day. This change outpaced the S&P 500's 1.21% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.49%.
Prior to today's trading, shares of the teen clothing retailer had lost 6.83% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.34% and the S&P 500's gain of 5.85% in that time.
Investors will be hoping for strength from American Eagle Outfitters as it approaches its next earnings release. In that report, analysts expect American Eagle Outfitters to post earnings of $0.26 per share. This would mark a year-over-year decline of 45.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 10.69% from the year-ago period.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $2.01 per share and revenue of $5.7 billion. These results would represent year-over-year changes of -8.22% and +13.71%, respectively.
It is also important to note the 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 0.37% higher within the past month. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).
Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 8.68. This represents a discount compared to its industry's average Forward P/E of 9.44.
Investors should also note that AEO has a PEG ratio of 0.79 right now. 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 was holding an average PEG ratio of 0.88 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Eagle Outfitters (AEO) Gains As Market Dips: What You Should Know
American Eagle Outfitters (AEO - Free Report) closed at $17.50 in the latest trading session, marking a +0.17% move from the prior day. This change outpaced the S&P 500's 1.21% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.49%.
Prior to today's trading, shares of the teen clothing retailer had lost 6.83% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.34% and the S&P 500's gain of 5.85% in that time.
Investors will be hoping for strength from American Eagle Outfitters as it approaches its next earnings release. In that report, analysts expect American Eagle Outfitters to post earnings of $0.26 per share. This would mark a year-over-year decline of 45.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 10.69% from the year-ago period.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $2.01 per share and revenue of $5.7 billion. These results would represent year-over-year changes of -8.22% and +13.71%, respectively.
It is also important to note the 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 0.37% higher within the past month. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).
Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 8.68. This represents a discount compared to its industry's average Forward P/E of 9.44.
Investors should also note that AEO has a PEG ratio of 0.79 right now. 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 was holding an average PEG ratio of 0.88 at yesterday's closing price.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.