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Abercrombie & Fitch (ANF) Ascends But Remains Behind Market: Some Facts to Note

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Abercrombie & Fitch (ANF - Free Report) closed the latest trading day at $147.48, indicating a +1.01% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 2.64%.

Shares of the teen clothing retailer witnessed a loss of 20.38% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.42% and the S&P 500's loss of 0.44%.

Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is expected to report EPS of $2.11, up 91.82% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.08 billion, showing a 15.65% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.35 per share and a revenue of $4.76 billion, demonstrating changes of +48.89% and +11.09%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Abercrombie & Fitch. These revisions help to show the ever-changing nature of 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.06% higher within the past month. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Abercrombie & Fitch is at present trading with a Forward P/E ratio of 15.61. This expresses a premium compared to the average Forward P/E of 15.16 of its industry.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 24% echelons 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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