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.
Momentum Indicator for ANF turns positive, indicating new upward trend
ANF saw its Momentum Indicator move above the 0 level on November 25, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 73 similar instances where the indicator turned positive. In of the 73 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 49 cases where ANF's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ANF just turned positive on October 24, 2025. Looking at past instances where ANF's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
ANF moved above its 50-day moving average on November 25, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a +4 3-day Advance, the price is estimated to grow further. Considering data from situations where ANF advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 November 25, 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 Aroon Indicator for ANF entered a downward trend on October 29, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 (3.465) is normal, around the industry mean (7.778). P/E Ratio (9.044) is within average values for comparable stocks, (31.545). ANF's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.332). ANF has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (0.954) is also within normal values, averaging (3.705).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ANF’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 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