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American Eagle Outfitters (AEO) Ascends But Remains Behind Market: Some Facts to Note

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American Eagle Outfitters (AEO - Free Report) ended the recent trading session at $12.12, demonstrating a +1.08% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.12%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 1.46%.

Heading into today, shares of the teen clothing retailer had lost 24.02% over the past month, lagging the Retail-Wholesale sector's loss of 6.55% and the S&P 500's loss of 4.13% in that time.

Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company's earnings report is set to go public on March 12, 2025. The company is forecasted to report an EPS of $0.50, showcasing a 18.03% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.61 billion, showing a 4.34% drop compared to the year-ago quarter.

Any recent changes to analyst estimates for American Eagle Outfitters should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Currently, American Eagle Outfitters is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 6.68. This valuation marks a discount compared to its industry's average Forward P/E of 14.12.

It is also worth noting that AEO currently has a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AEO's industry had an average PEG ratio of 0.98 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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