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American Eagle Outfitters (AEO) Stock Moves -0.92%: What You Should Know

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The latest trading session saw American Eagle Outfitters (AEO - Free Report) ending at $17.27, denoting a -0.92% adjustment from its last day's close. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq lost 0.11%.

The teen clothing retailer's stock has dropped by 11.7% in the past month, falling short of the Retail-Wholesale sector's gain of 2.38% and the S&P 500's gain of 0.97%.

The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company is slated to reveal its earnings on December 4, 2024. The company's upcoming EPS is projected at $0.46, signifying a 6.12% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.31 billion, indicating a 0.43% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.77 per share and a revenue of $5.39 billion, demonstrating changes of +16.45% and +2.52%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. As of now, American Eagle Outfitters holds a Zacks Rank of #3 (Hold).

Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 9.83. This indicates a discount in contrast to its industry's Forward P/E of 14.54.

Meanwhile, AEO's PEG ratio is currently 0.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.56.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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