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American Eagle Outfitters (AEO) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $14.87, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.21% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the teen clothing retailer had lost 17.58% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
American Eagle Outfitters will be looking to display strength as it nears its next earnings release. On that day, American Eagle Outfitters is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 47.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 10.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $5.69 billion, which would represent changes of -8.68% and +13.49%, respectively, from the prior year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Eagle Outfitters has a Forward P/E ratio of 7.57 right now. For comparison, its industry has an average Forward P/E of 9.88, which means American Eagle Outfitters is trading at a discount to the group.
Also, we should mention that AEO has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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 AEO in the coming trading sessions, be sure to utilize Zacks.com.
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American Eagle Outfitters (AEO) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, American Eagle Outfitters (AEO - Free Report) closed at $14.87, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.21% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the teen clothing retailer had lost 17.58% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.18% and the S&P 500's loss of 8.08% in that time.
American Eagle Outfitters will be looking to display strength as it nears its next earnings release. On that day, American Eagle Outfitters is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 47.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 10.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $5.69 billion, which would represent changes of -8.68% and +13.49%, respectively, from the prior year.
Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Eagle Outfitters has a Forward P/E ratio of 7.57 right now. For comparison, its industry has an average Forward P/E of 9.88, which means American Eagle Outfitters is trading at a discount to the group.
Also, we should mention that AEO has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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 AEO in the coming trading sessions, be sure to utilize Zacks.com.