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Abercrombie & Fitch (ANF) Laps the Stock Market: Here's Why

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Abercrombie & Fitch (ANF - Free Report) closed at $130.35 in the latest trading session, marking a +1.75% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1%. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 1.51%.

Prior to today's trading, shares of the teen clothing retailer had lost 16.41% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.58% and the S&P 500's loss of 2.14% in that time.

Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. The company is expected to report EPS of $3.51, up 18.18% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.56 billion, indicating a 7.54% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.64 per share and a revenue of $4.93 billion, representing changes of +69.43% and +15.11%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Abercrombie & Fitch. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% increase. Abercrombie & Fitch is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Abercrombie & Fitch's current valuation metrics, including its Forward P/E ratio of 12.04. This represents a discount compared to its industry's average Forward P/E of 15.72.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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