The most recent trading session ended with American Eagle Outfitters (AEO) standing at $15.82, reflecting a +0.25% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.39% gain on the day. Elsewhere, the Dow saw an upswing of 0.71%, while the tech-heavy Nasdaq appreciated by 0.2%.

Shares of the teen clothing retailer witnessed a loss of 5.62% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 8.29% and the S&P 500's gain of 1.7%.

Analysts and investors alike will be keeping a close eye on the performance of American Eagle Outfitters in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.50, marking a 18.03% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.61 billion, down 3.95% from the year-ago period.

It is also important to note the recent changes to analyst estimates for American Eagle Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% lower. American Eagle Outfitters is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 8.74. For comparison, its industry has an average Forward P/E of 15.87, which means American Eagle Outfitters is trading at a discount to the group.

It's also important to note that AEO currently trades at a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.26.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

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