Abercrombie & Fitch (ANF) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Abercrombie & Fitch (ANF) closed at $76.64, marking a -1.82% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.27%, while the tech-heavy Nasdaq depreciated by 0.38%.
Shares of the teen clothing retailer have appreciated by 7.27% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 12.4% and the S&P 500's gain of 13.07%.
Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 28, 2025. The company is expected to report EPS of $1.42, down 33.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, up 5.25% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.96 per share and a revenue of $5.16 billion, signifying shifts of +2.53% and +4.24%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Abercrombie & Fitch. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% decrease. As of now, Abercrombie & Fitch holds a Zacks Rank of #3 (Hold).
Digging into valuation, Abercrombie & Fitch currently has a Forward P/E ratio of 7.12. For comparison, its industry has an average Forward P/E of 16.3, which means Abercrombie & Fitch is trading at a discount to the group.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 134, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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