Abercrombie Story

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ANF -- USA Stock  

USD 39.83  1.06  2.73%

As many of us are excited about consumer cyclical space, it is fair to digest Abercrombie Fitch within current market trends. As expected, Abercrombie Fitch is starting to reaffirm its true potential as shareholders are becoming more and more confident in the future outlook. The returns on investing in Abercrombie Fitch and the market returns of the last few months appear uncorrelated. The appearance of sound fundamental indicators of the firm indicates a shorter-term price swing for shareholders of Abercrombie. Abercrombie Fitch is scheduled to announce its earnings today. The next earnings report is expected on the 27th of May 2021.
Published over a month ago
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Will Abercrombie Fitch (NYSE:ANF) price continue to surge in April?
The company's average rating is Hold from 10 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Abercrombie Fitch market sentiment investors' perception of the future value of Abercrombie. Let us look at a few aspects of Abercrombie technical analysis. Earning per share calculations of the firm is based on official Zacks consensus of 7 analysts regarding Abercrombie Fitch's future annual earnings. Given the historical accuracy of 46.42%, the future earnings per share of the company is estimated to be -1.135 with the lowest and highest values of -1.75 and -0.92, respectively. Please note that this consensus of annual earnings estimates for Abercrombie Fitch is an estimate of EPS before non-recurring items and including employee stock options expenses.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Abercrombie Fitch. In general, we focus on analyzing Abercrombie Fitch stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Abercrombie Fitch's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Abercrombie Fitch's intrinsic value. In addition to deriving basic predictive indicators for Abercrombie Fitch, we also check how macroeconomic factors affect Abercrombie Fitch price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Abercrombie Fitch's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Abercrombie Fitch in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Abercrombie Fitch. Your research has to be compared to or analyzed against Abercrombie Fitch's peers to derive any actionable benefits. When done correctly, Abercrombie Fitch's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Abercrombie Fitch.

How does Abercrombie Stands against Peers?

Analyzing Abercrombie Fitch competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Abercrombie Fitch across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Abercrombie Fitch Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Abercrombie Fitch, but it might be worth checking our own buy vs. sell analysis

Closer look at Abercrombie Fitch Standard Deviation

Abercrombie Fitch has current Standard Deviation of 3.12. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
=  
SQRT(V) 
 = 
3.12
SQRT = Square root notation
V =   Variance of Abercrombie Fitch returns
Let's now compare Abercrombie Fitch Standard Deviation to its closest peers:
ANF
DLTH
AEO
FRANQ
CRI
ANF3.122998325731657
DLTH3.86
AEO2.31
FRANQ9.32
CRI2.71

Abercrombie is expecting lower volatility in April

Abercrombie Fitch latest mean deviation ascents over 2.39. Abercrombie Fitch currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.43. However, we advise investors to further question Abercrombie Fitch expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abercrombie Fitch's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Abercrombie Fitch's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Abercrombie Fitch

Although other entities within the apparel retail industry are still a little expensive, even after the recent corrections, Abercrombie Fitch may offer a potential longer-term growth to shareholders. All things considered, as of the 2nd of March 2021, our analysis shows that Abercrombie Fitch barely shadows the market. The firm is overvalued and projects low chance of financial distress for the next 2 years. Our ongoing 30 days Buy-Hold-Sell recommendation on the firm is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Abercrombie Fitch. Please refer to our Terms of Use for any information regarding our disclosure principles.

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