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American Eagle Outfitters (AEO) closed the latest trading day at $11.98, indicating a +0.67% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.18%.

The teen clothing retailer's shares have seen an increase of 15.76% over the last month, surpassing the Retail-Wholesale sector's gain of 9.47% and the S&P 500's gain of 9%.

The upcoming earnings release of American Eagle Outfitters will be of great interest to investors. The company's earnings report is expected on May 29, 2025. It is anticipated that the company will report an EPS of $0.11, marking a 67.65% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.08 billion, down 5.3% from the year-ago period.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $5.22 billion. These results would represent year-over-year changes of -14.37% and -1.97%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Eagle Outfitters. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% lower. American Eagle Outfitters is currently a Zacks Rank #3 (Hold).

Looking at its valuation, American Eagle Outfitters is holding a Forward P/E ratio of 8. This expresses a discount compared to the average Forward P/E of 16.04 of its industry.

We can additionally observe that AEO currently boasts a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.58.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 138, this industry ranks in the bottom 45% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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

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