American Eagle Outfitters (AEO) closed the most recent trading day at $17.18, moving -0.35% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.28%.

The teen clothing retailer's shares have seen an increase of 4.42% over the last month, surpassing the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08%.

The investment community will be closely monitoring the performance of American Eagle Outfitters in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.49, reflecting a 19.67% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.61 billion, indicating a 3.92% decrease compared to the same quarter of the previous year.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.70 per share and revenue of $5.34 billion. These results would represent year-over-year changes of +11.84% and +1.43%, respectively.

Investors might also notice recent changes to analyst estimates for American Eagle Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.04% upward. Currently, American Eagle Outfitters is carrying a Zacks Rank of #5 (Strong Sell).

Digging into valuation, American Eagle Outfitters currently has a Forward P/E ratio of 10.17. This represents a discount compared to its industry's average Forward P/E of 16.72.

It is also worth noting that AEO currently has a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.48 as trading concluded yesterday.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research