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Abercrombie & Fitch (ANF) Stock Sinks As Market Gains: What You Should Know

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Abercrombie & Fitch (ANF - Free Report) closed the latest trading day at $153.57, indicating a -0.65% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.69%. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.

The the stock of teen clothing retailer has fallen by 7.63% in the past month, lagging the Retail-Wholesale sector's loss of 6.24% and the S&P 500's loss of 4.78%.

The investment community will be closely monitoring the performance of Abercrombie & Fitch in its forthcoming earnings report. The company is scheduled to release its earnings on August 28, 2024. The company is forecasted to report an EPS of $2.13, showcasing a 93.64% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 16.43% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.49 per share and revenue of $4.77 billion, indicating changes of +51.11% and +11.45%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.56% higher within the past month. Currently, Abercrombie & Fitch is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Abercrombie & Fitch is currently exchanging hands at a Forward P/E ratio of 16.29. This represents a premium compared to its industry's average Forward P/E of 15.49.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 29% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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