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American Eagle Outfitters (AEO) Declines More Than Market: Some Information for Investors

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In the latest close session, American Eagle Outfitters (AEO - Free Report) was down 9.49% at $12.02. This move lagged the S&P 500's daily loss of 0.49%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.65%.

Heading into today, shares of the teen clothing retailer had gained 34.01% over the past month, outpacing the Retail-Wholesale sector's loss of 1.34% and the S&P 500's gain of 0.96%.

Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.2, indicating a 48.72% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.23 billion, indicating a 4.55% decrease compared to the same quarter of the previous year.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $5.19 billion. These results would represent year-over-year changes of -53.45% and -2.58%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.11% downward. American Eagle Outfitters is currently a Zacks Rank #5 (Strong Sell).

Investors should also note American Eagle Outfitters's current valuation metrics, including its Forward P/E ratio of 16.34. For comparison, its industry has an average Forward P/E of 17.42, which means American Eagle Outfitters is trading at a discount to the group.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AEO in the coming trading sessions, be sure to utilize Zacks.com.


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