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

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The most recent trading session ended with Abercrombie & Fitch (ANF - Free Report) standing at $129.99, reflecting a -1.07% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.83% for the day. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.

Prior to today's trading, shares of the teen clothing retailer had lost 13.98% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31% in that time.

Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. In that report, analysts expect Abercrombie & Fitch to post earnings of $3.51 per share. This would mark year-over-year growth of 18.18%. In the meantime, our current consensus estimate forecasts the revenue to be $1.56 billion, indicating a 7.54% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.64 per share and a revenue of $4.92 billion, representing changes of +69.43% and +15.01%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. At present, Abercrombie & Fitch boasts a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Abercrombie & Fitch is at present trading with a Forward P/E ratio of 12.35. This expresses a discount compared to the average Forward P/E of 15.92 of its industry.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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