The most recent trading session ended with American Eagle Outfitters (AEO) standing at $20.69, reflecting a +0.98% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.04%.

The teen clothing retailer's shares have seen a decrease of 9.74% over the last month, not keeping up with the Retail-Wholesale sector's gain of 6.04% and the S&P 500's gain of 1.95%.

Market participants will be closely following the financial results of American Eagle Outfitters in its upcoming release. In that report, analysts expect American Eagle Outfitters to post earnings of $0.47 per share. This would mark a year-over-year decline of 4.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.31 billion, up 0.54% from the year-ago period.

AEO's full-year Zacks Consensus Estimates are calling for earnings of $1.78 per share and revenue of $5.39 billion. These results would represent year-over-year changes of +17.11% and +2.48%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for American Eagle Outfitters. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.32% lower. American Eagle Outfitters currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, American Eagle Outfitters is currently exchanging hands at a Forward P/E ratio of 11.52. This denotes a discount relative to the industry's average Forward P/E of 17.43.

Also, we should mention that AEO has a PEG ratio of 1.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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