In the latest trading session, American Eagle Outfitters (AEO) closed at $14.44, marking a -1.9% move from the previous day. This change lagged the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.08%.

The teen clothing retailer's stock has dropped by 14.62% in the past month, falling short of the Retail-Wholesale sector's gain of 5.98% and the S&P 500's gain of 2.37%.

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. 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. Alongside, our most recent consensus estimate is anticipating revenue of $1.61 billion, indicating a 3.95% downward movement from the same quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% higher. American Eagle Outfitters presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, American Eagle Outfitters is currently exchanging hands at a Forward P/E ratio of 8.16. This signifies a discount in comparison to the average Forward P/E of 15.29 for its industry.

We can also see that AEO currently has a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.2.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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