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American Eagle Outfitters (AEO) Outpaces Stock Market Gains: What You Should Know
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American Eagle Outfitters (AEO - Free Report) closed at $14.19 in the latest trading session, marking a +1.14% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.35%.
Coming into today, shares of the teen clothing retailer had lost 15.02% in the past month. In that same time, the Retail-Wholesale sector lost 16.19%, while the S&P 500 lost 11.03%.
American Eagle Outfitters will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.25, down 47.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 10.04% 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 +13.47%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% lower. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).
Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 7.03. This valuation marks a discount compared to its industry's average Forward P/E of 7.99.
We can also see that AEO currently has a PEG ratio of 0.64. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Eagle Outfitters (AEO) Outpaces Stock Market Gains: What You Should Know
American Eagle Outfitters (AEO - Free Report) closed at $14.19 in the latest trading session, marking a +1.14% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.35%.
Coming into today, shares of the teen clothing retailer had lost 15.02% in the past month. In that same time, the Retail-Wholesale sector lost 16.19%, while the S&P 500 lost 11.03%.
American Eagle Outfitters will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.25, down 47.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 10.04% 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 +13.47%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% lower. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).
Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 7.03. This valuation marks a discount compared to its industry's average Forward P/E of 7.99.
We can also see that AEO currently has a PEG ratio of 0.64. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 0.8 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.