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American Eagle Outfitters (AEO) closed at $10.69 in the latest trading session, marking a +1.52% move from the prior day. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, added 1.52%.
Shares of the teen clothing retailer witnessed a loss of 16.76% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.09% and the S&P 500's loss of 0.7%.
The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. In that report, analysts expect American Eagle Outfitters to post earnings of $0.11 per share. This would mark a year-over-year decline of 67.65%. Alongside, our most recent consensus estimate is anticipating revenue of $1.08 billion, indicating a 5.35% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.50 per share and a revenue of $5.22 billion, demonstrating changes of -13.79% and -1.98%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. At present, American Eagle Outfitters boasts a Zacks Rank of #4 (Sell).
Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 7.04. This denotes a discount relative to the industry's average Forward P/E of 13.41.
Investors should also note that AEO has a PEG ratio of 0.75 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes was holding an average PEG ratio of 1.39 at yesterday's closing price.