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Abercrombie & Fitch (ANF) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Abercrombie & Fitch (ANF - Free Report) ending at $140.87, denoting a -1.05% adjustment from its last day's close. This change lagged the S&P 500's 0.71% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.

Prior to today's trading, shares of the teen clothing retailer had gained 9.63% over the past month. This has outpaced the Retail-Wholesale sector's gain of 8.01% and the S&P 500's gain of 6.41% in that time.

The upcoming earnings release of Abercrombie & Fitch will be of great interest to investors. In that report, analysts expect Abercrombie & Fitch to post earnings of $2.31 per share. This would mark year-over-year growth of 26.23%. Alongside, our most recent consensus estimate is anticipating revenue of $1.18 billion, indicating a 11.27% upward movement from the same quarter last year.

ANF's full-year Zacks Consensus Estimates are calling for earnings of $10.26 per share and revenue of $4.84 billion. These results would represent year-over-year changes of +63.38% and +13.01%, respectively.

Investors should also note any recent changes to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape 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 demonstrates that these adjustments in estimates directly associate with imminent 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.5% upward. At present, Abercrombie & Fitch boasts a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 13.87 right now. This signifies a discount in comparison to the average Forward P/E of 15.8 for its industry.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 35% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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