Back to top

Image: Bigstock

American Eagle Outfitters (AEO) Stock Moves -1.49%: What You Should Know

Read MoreHide Full Article

American Eagle Outfitters (AEO - Free Report) ended the recent trading session at $19.78, demonstrating a -1.49% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 3%. On the other hand, the Dow registered a loss of 2.6%, and the technology-centric Nasdaq decreased by 3.43%.

The teen clothing retailer's shares have seen an increase of 4.53% over the last month, surpassing the Retail-Wholesale sector's loss of 5.36% and the S&P 500's loss of 2.92%.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is expected to report EPS of $0.36, up 44% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.3 billion, showing an 8.18% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.75 per share and a revenue of $5.43 billion, demonstrating changes of +15.13% and +3.16%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, American Eagle Outfitters possesses a Zacks Rank of #1 (Strong Buy).

In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 11.49. Its industry sports an average Forward P/E of 14.29, so one might conclude that American Eagle Outfitters is trading at a discount comparatively.

Also, we should mention that AEO has a PEG ratio of 0.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.83 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 182, finds itself in the bottom 29% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Eagle Outfitters, Inc. (AEO) - free report >>

Published in