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American Eagle Outfitters (AEO) Stock Moves -0.5%: What You Should Know

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In the latest market close, American Eagle Outfitters (AEO - Free Report) reached $19.83, with a -0.5% movement compared to the previous day. This change was narrower than the S&P 500's 0.71% loss on the day. At the same time, the Dow lost 0.93%, and the tech-heavy Nasdaq lost 0.81%.

Heading into today, shares of the teen clothing retailer had gained 0.56% over the past month, outpacing the Retail-Wholesale sector's loss of 0.03% and lagging the S&P 500's gain of 1.08% in that time.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. On that day, American Eagle Outfitters is projected to report earnings of $0.36 per share, which would represent year-over-year growth of 44%. At the same time, our most recent consensus estimate is projecting a revenue of $1.3 billion, reflecting an 8.18% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.75 per share and a revenue of $5.43 billion, indicating changes of +15.13% and +3.16%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, American Eagle Outfitters possesses a Zacks Rank of #3 (Hold).

Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 11.41. This denotes a discount relative to the industry's average Forward P/E of 14.75.

We can also see that AEO currently has a PEG ratio of 0.96. 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. The Retail - Apparel and Shoes industry had an average PEG ratio of 2.06 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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