American Eagle Outfitters (AEO) Advances While Market Declines: Some Information for Investors

Company Performance - American Eagle Outfitters (AEO) closed at $13.90, showing a +0.94% change from the previous day's closing price, outperforming the S&P 500 which fell by 0.5% [1] - Over the past month, AEO shares have decreased by 20.36%, underperforming the Retail-Wholesale sector's gain of 1.04% and the S&P 500's loss of 0.47% [2] Earnings Forecast - AEO is expected to release its earnings on March 12, 2025, with projected earnings per share (EPS) of$ 0.50, reflecting an 18.03% decrease from the same quarter last year [3] - The consensus estimate for revenue is $1.61 billion, indicating a 3.95% decrease compared to the same quarter of the previous year [3] Analyst Estimates - Recent changes to analyst estimates for AEO are crucial as they reflect the evolving business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks AEO at 3 (Hold) [6] Valuation Metrics - AEO is trading at a Forward P/E ratio of 7.64, significantly lower than the industry average of 14.77, suggesting it is trading at a discount [7] - The company has a PEG ratio of 0.82, compared to the industry average of 1.09, indicating a favorable valuation relative to expected earnings growth [8] Industry Context - The Retail - Apparel and Shoes industry, to which AEO belongs, has a Zacks Industry Rank of 74, placing it in the top 30% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]