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Abercrombie & Fitch (ANF) Stock Declines While Market Improves: Some Information for Investors

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Abercrombie & Fitch (ANF - Free Report) closed the latest trading day at $133.72, indicating a -1.48% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the teen clothing retailer had lost 5.04% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.59% and the S&P 500's gain of 1.21% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.31, reflecting a 26.23% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.17 billion, showing a 11.2% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.26 per share and revenue of $4.84 billion, which would represent changes of +63.38% and +13.05%, respectively, from the prior year.

Any recent changes to analyst estimates for Abercrombie & Fitch should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.42% higher within the past month. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 13.23. This valuation marks a discount compared to its industry's average Forward P/E of 17.48.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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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