Poor fundamentals and a bearish signal for Abercrombie & Fitch as it faces resistance
Fashion retailer Abercrombie & Fitch (NYSE: ANF) fell sharply when it announced first-quarter earnings back in May. The company lowered its outlook for Q2 and that spooked investors that had been gaining in optimism. Here it is two months later and the stock has rallied back from the loss that occurred after earnings.
The company has been struggling for the last few years and the earnings and sales results have been relatively flat. The earnings have been flat over the last three years and they are expected to be down 18% for 2019. Sales have grown at a paltry 2% average over the last three years and they were flat in the first quarter.
The company’s return on equity is only 6.5% and the profit margin is low as well at 3.6%. Both of these figures are well below average.
The Tickeron Trend Prediction Engine generated a bearish signal for Abercrombie on July 17 and that signal calls for a decline of at least 4% within the next month. The signal showed a confidence level of 77% and past predictions on the stock have been successful 90% of the time.
The timing of the signal from the prediction engine is interesting when you look at the daily chart of the stock. We see that the stock has rallied over 20% from its June low, but now it is approaching the 50-day moving average as well as the $19.50 area. This area acted as support back in February and then it marked the top of the gap lower in May. This area could act as a resistance along with the 50-day.
Aroon Indicator for ANF shows an upward move is likely
ANF's Aroon Indicator triggered a bullish signal on June 06, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 305 similar instances where the Aroon Indicator showed a similar pattern. In of the 305 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2025. You may want to consider a long position or call options on ANF as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ANF just turned positive on June 26, 2025. Looking at past instances where ANF's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
ANF moved above its 50-day moving average on June 18, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ANF advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ANF moved out of overbought territory on July 07, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 60 similar instances where the indicator moved out of overbought territory. In of the 60 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where ANF's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ANF declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ANF broke above its upper Bollinger Band on July 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.431) is normal, around the industry mean (3.964). P/E Ratio (21.196) is within average values for comparable stocks, (110.742). ANF's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.444). ANF has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (1.624) is also within normal values, averaging (1.139).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ANF’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
an operator of apparel and personal care stores
Industry ApparelFootwearRetail
Advertisement