American Eagle Outfitters(AEO) ZACKS·2025-02-05 23:55Company Performance - American Eagle Outfitters (AEO) closed at 0.50, representing an 18.03% decline compared to the same quarter of the previous year [2] - The Zacks Consensus Estimate for revenue projects net sales of $1.61 billion, down 3.95% from the year-ago period [2] Analyst Estimates - Recent changes to analyst estimates for AEO indicate short-term business trends, with positive revisions seen as a favorable sign for the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for stocks [4] Zacks Rank and Valuation - AEO currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.62% lower over the past month [5] - The company is trading at a Forward P/E ratio of 8.74, which is below the industry average of 15.87, indicating a discount [6] - AEO has a PEG ratio of 0.94, compared to the industry average of 1.26, suggesting favorable valuation relative to expected earnings growth [7] Industry Context - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 70, placing it in the top 28% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]