Abercrombie & Fitch (ANF) closed the most recent trading day at $38.97, moving +0.65% from the previous trading session. This change outpaced the S&P 500's 0.92% loss on the day.
Heading into today, shares of the teen clothing retailer had gained 18.97% over the past month, outpacing the Retail-Wholesale sector's gain of 0.19% and the S&P 500's gain of 6.83% in that time.
Investors will be hoping for strength from ANF as it approaches its next earnings release. In that report, analysts expect ANF to post earnings of -$0.48 per share. This would mark year-over-year growth of 85.41%. Meanwhile, our latest consensus estimate is calling for revenue of $677.27 million, up 39.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.42 per share and revenue of $3.5 billion, which would represent changes of +294.52% and +11.91%, respectively, from the prior year.
Any recent changes to analyst estimates for ANF should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.24% higher. ANF currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, ANF is currently trading at a Forward P/E ratio of 26.61. For comparison, its industry has an average Forward P/E of 20.89, which means ANF is trading at a premium to the group.
Also, we should mention that ANF has a PEG ratio of 1.48. 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 2.33 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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