American Eagle Outfitters (AEO) closed the latest trading day at $10.64, indicating a -0.37% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.81%. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.

The the stock of teen clothing retailer has fallen by 2.73% in the past month, leading the Retail-Wholesale sector's loss of 5.27% and the S&P 500's loss of 6.14%.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.11, showcasing a 67.65% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.08 billion, showing a 5.27% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.50 per share and revenue of $5.22 billion. These totals would mark changes of -13.79% and -1.96%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.4% decrease. American Eagle Outfitters presently features a Zacks Rank of #4 (Sell).

In terms of valuation, American Eagle Outfitters is currently trading at a Forward P/E ratio of 7.13. This signifies a discount in comparison to the average Forward P/E of 12.51 for its industry.

We can also see that AEO currently has a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.24.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 44% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research