American Eagle Outfitters (AEO) Gains As Market Dips: What You Should Know
American Eagle Outfitters (AEO) closed the most recent trading day at $34.72, moving +0.73% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.18%.
Heading into today, shares of the teen clothing retailer had lost 7.93% over the past month, lagging the Retail-Wholesale sector's loss of 3.25% and the S&P 500's gain of 2.44% in that time.
AEO will be looking to display strength as it nears its next earnings release. On that day, AEO is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 1833.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 35.94% from the year-ago period.
AEO's full-year Zacks Consensus Estimates are calling for earnings of $2.08 per share and revenue of $4.97 billion. These results would represent year-over-year changes of +940% and +32.25%, respectively.
Investors might also notice recent changes to analyst estimates for AEO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AEO is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, AEO currently has a Forward P/E ratio of 16.57. Its industry sports an average Forward P/E of 16.57, so we one might conclude that AEO is trading at a no noticeable deviation comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.
To follow AEO in the coming trading sessions, be sure to utilize Zacks.com.
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