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American Eagle Outfitters (AEO) Rises Higher Than Market: Key Facts

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American Eagle Outfitters (AEO - Free Report) closed at $22.11 in the latest trading session, marking a +0.96% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.

Shares of the teen clothing retailer witnessed a gain of 11.79% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.59% and the S&P 500's gain of 1.21%.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.47, indicating a 4.08% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 0.54% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and revenue of $5.39 billion, which would represent changes of +17.11% and +2.48%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.32% decrease. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).

Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 12.31. This denotes a discount relative to the industry's average Forward P/E of 17.48.

One should further note that AEO currently holds a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AEO's industry had an average PEG ratio of 1.94 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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