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Abercrombie & Fitch (ANF) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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In the latest trading session, Abercrombie & Fitch (ANF) closed at $38.77, marking a +0.15% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the teen clothing retailer had gained 7.02% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 5.07% in that time.

Wall Street will be looking for positivity from ANF as it approaches its next earnings report date. The company is expected to report EPS of -$0.53, up 83.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $669.49 million, up 37.94% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $3.48 billion. These totals would mark changes of +286.3% and +11.41%, respectively, from last year.

Any recent changes to analyst estimates for ANF should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ANF is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that ANF has a Forward P/E ratio of 28.39 right now. This represents a premium compared to its industry's average Forward P/E of 23.9.

It is also worth noting that ANF currently has a PEG ratio of 1.58. 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. ANF's industry had an average PEG ratio of 2.74 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 88, which puts it in the top 35% 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.


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