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How long will Abercrombie stock's bull run continue?
Abercrombie & Fitch Co. (NYSE:ANF) is an American lifestyle retailer that focuses on casual wear. ANF offers apparel and accessories for men, women, and kids through five brands: Abercrombie & Fitch, Abercrombie Kids, Hollister, Gilly Hicks, and Social Tourist. Abercrombie & Fitch operates over 730 stores under its brands across North America, Europe, Asia, and the Middle East. This afternoon, ANF is trading up 7.2% at $45.52.
On Oct. 29, the retail brand announced that it will host its quarterly earnings conference call on Tuesday, Nov. 23. A press release detailing Abercrombie & Fitch's third quarter results is expected to be issued on the the same day. At this time, Wall Street analysts anticipate that ANF's earnings will come in at $0.63 per share in the upcoming earnings report.
Abercrombie & Fitch stock has increased about 204% in price year-over-year and has added 212% since bottoming at a 52-week low of $14.57. Shares of ANF have grown 126% year-to-date, but have shed 3% from its eight-year high of $47.29. The equity's recent growth can be attributed in part to the ascending 180-day moving average, of which, the stock bounced off on Nov. 1.
From a fundamental point of view, Abercrombie & Fitch doesn’t have a history of consistent growth. The retail company also experienced significant drops in net income during fiscal 2019 and fiscal 2020. Abercrombie & Fitch reported $39 million in net income for fiscal 2019.
On the flip side, ANF’s recent net income growth has allowed it to maintain an attractive valuation despite the stock’s massive growth this past year. ANF trades at a price-earnings ratio of 10.66 and a price-sales ratio of 0.70. In addition, Abercrombie stock has a forward price-earnings ratio of 9.19, meaning the retail company is expected to continue growing their earnings in the coming year. Overall, ANF remains an intriguing value play in the short-term, but may be considered a riskier long-term investment.
It's worth noting that short interest has been on the rise on Abercrombie & Fitch stock, up 22.6% during the most recent reporting period. This accounts for 12.7% of the stock's total available float, and would take shorts over four days to buy back their bearish bets.