Yahoo Finance American Eagle Outfitters (AEO) Stock Sinks As Market Gains: What You Should Know
American Eagle Outfitters (AEO) ended the recent trading session at $24.46, demonstrating a -0.29% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.17%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq depreciated by 0.03%.
Heading into today, shares of the teen clothing retailer had gained 3.94% over the past month, outpacing the Retail-Wholesale sector's gain of 1.26% and the S&P 500's gain of 0.17% in that time.
Market participants will be closely following the financial results of American Eagle Outfitters in its upcoming release. On that day, American Eagle Outfitters is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 58.82%. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 5.93% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.71 per share and revenue of $5.44 billion, indicating changes of +12.5% and +3.37%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. American Eagle Outfitters currently has a Zacks Rank of #2 (Buy).
Looking at valuation, American Eagle Outfitters is presently trading at a Forward P/E ratio of 14.31. This denotes a discount relative to the industry's average Forward P/E of 15.72.
We can also see that AEO currently has a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.36 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
