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The latest trading session saw Abercrombie & Fitch (ANF) ending at $73.61, denoting a +0.85% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.81%. Meanwhile, the Dow experienced a rise of 1.56%, and the technology-dominated Nasdaq saw an increase of 2.06%.
Prior to today's trading, shares of the teen clothing retailer had lost 3.87% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.27% and the S&P 500's loss of 6.14% in that time.
Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. It is anticipated that the company will report an EPS of $1.48, marking a 30.84% 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, up 5.38% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.06 per share and revenue of $5.17 billion. These totals would mark changes of +3.46% and +4.57%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% downward. Right now, Abercrombie & Fitch possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Abercrombie & Fitch is currently trading at a Forward P/E ratio of 6.6. Its industry sports an average Forward P/E of 12.51, so one might conclude that Abercrombie & Fitch is trading at a discount comparatively.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 140, placing it within the bottom 44% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.