In the latest trading session, American Eagle Outfitters (AEO) closed at $14.20, marking a -1.93% move from the previous day. This change lagged the S&P 500's 0.27% loss on the day. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.03%.

The the stock of teen clothing retailer has fallen by 9.05% in the past month, lagging the Retail-Wholesale sector's gain of 8.91% and the S&P 500's gain of 4.27%.

The investment community will be paying close attention to the earnings performance of American Eagle Outfitters in its upcoming release. The company is predicted to post an EPS of $0.50, indicating a 18.03% decline compared to the equivalent quarter last 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, American Eagle Outfitters possesses a Zacks Rank of #3 (Hold).

In terms of valuation, American Eagle Outfitters is presently being traded at a Forward P/E ratio of 8.02. This represents a discount compared to its industry's average Forward P/E of 14.97.

One should further note that AEO currently holds a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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