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Surging Earnings Estimates Signal Upside for Abercrombie (ANF) Stock
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Investors might want to bet on Abercrombie & Fitch (ANF - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this teen clothing retailer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Abercrombie, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.58 per share, which is a change of +5700% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Abercrombie has increased 85.48% because two estimates have moved higher while one has gone lower.
Current-Year Estimate Revisions
The company is expected to earn $2.83 per share for the full year, which represents a change of +1032% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Abercrombie. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 36.39%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Abercrombie currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Abercrombie because of its solid estimate revisions, as evident from the stock's 25.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
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Surging Earnings Estimates Signal Upside for Abercrombie (ANF) Stock
Investors might want to bet on Abercrombie & Fitch (ANF - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this teen clothing retailer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Abercrombie, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.58 per share, which is a change of +5700% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Abercrombie has increased 85.48% because two estimates have moved higher while one has gone lower.
Current-Year Estimate Revisions
The company is expected to earn $2.83 per share for the full year, which represents a change of +1032% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Abercrombie. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 36.39%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Abercrombie currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Abercrombie because of its solid estimate revisions, as evident from the stock's 25.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.