Prior to today’s trading, shares of the teen clothing retailer had lost 7.12% over the past month. This has lagged the Retail-Wholesale sector’s gain of 0.42% and the S&P 500’s gain of 3.28% in that time.
Investors will be hoping for strength from ANF as it approaches its next earnings release. On that day, ANF is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 195.65%. Meanwhile, our latest consensus estimate is calling for revenue of $865.1 million, up 23.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.30 per share and revenue of $3.73 billion, which would represent changes of +552.05% and +19.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ANF. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 16.49% higher. ANF currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ANF has a Forward P/E ratio of 12.27 right now. Its industry sports an average Forward P/E of 16.72, so we one might conclude that ANF is trading at a discount comparatively.
We can also see that ANF currently has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Retail – Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.25 based on yesterday’s closing prices.
The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.