American Eagle Outfitters (AEO) Rises As Market Takes a Dip: Key Facts

In the latest trading session, American Eagle Outfitters (AEO) closed at $16.35, marking a +1.11% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.52%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 0.32%.

Coming into today, shares of the teen clothing retailer had lost 5.05% in the past month. In that same time, the Retail-Wholesale sector gained 3.74%, while the S&P 500 gained 3.3%.

The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. On that day, American Eagle Outfitters is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 53.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, up 6.45% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.77 per share and revenue of $5.81 billion. These totals would mark changes of +18% and +5.66%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.68% higher. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 9.12. This represents a discount compared to its industry average Forward P/E of 15.64.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).

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