American Eagle Outfitters (AEO) Outperforms Broader Market: What You Need to Know

American Eagle Outfitters (AEO) ended the recent trading session at $16.91, demonstrating a +1.5% change from the preceding day's closing price. This change outpaced the S&P 500's 1.46% gain on the day. On the other hand, the Dow registered a gain of 1.24%, and the technology-centric Nasdaq increased by 2.03%. Shares of the teen clothing retailer have depreciated by 4.03% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 11.7%, and the S&P 500's gain of 10.32%.The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company is expected to report EPS of $0.11, up 137.93% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.18 billion, indicating a 8.52% increase compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $5.78 billion, representing changes of +17.33% and +5.09%, respectively, from the prior year. Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has shifted 0.28% downward. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold). Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 9.48. This expresses a discount compared to the average Forward P/E of 16.05 of its industry. We can additionally observe that AEO currently boasts a PEG ratio of 1.18. 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. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices. 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 evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks