Company Performance - American Eagle Outfitters (AEO) closed at $13.90, showing a +0.94% change from the previous day's closing price, outperforming the S&P 500 which fell by 0.5% [1] - Over the past month, AEO shares have decreased by 20.36%, underperforming the Retail-Wholesale sector's gain of 1.04% and the S&P 500's loss of 0.47% [2] Earnings Forecast - AEO is expected to release its earnings on March 12, 2025, with projected earnings per share (EPS) of $0.50, reflecting an 18.03% decrease from the same quarter last year [3] - The consensus estimate for revenue is $1.61 billion, indicating a 3.95% decrease compared to the same quarter of the previous year [3] Analyst Estimates - Recent changes to analyst estimates for AEO are crucial as they reflect the evolving business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks AEO at 3 (Hold) [6] Valuation Metrics - AEO is trading at a Forward P/E ratio of 7.64, significantly lower than the industry average of 14.77, suggesting it is trading at a discount [7] - The company has a PEG ratio of 0.82, compared to the industry average of 1.09, indicating a favorable valuation relative to expected earnings growth [8] Industry Context - The Retail - Apparel and Shoes industry, to which AEO belongs, has a Zacks Industry Rank of 74, placing it in the top 30% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Group 1 - American Eagle Outfitters (NYSE: AEO) has shown generally positive financial performance, although there are some weak spots [1] - The most significant concern for the company is its cash flows [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects with real potential in the sector [1]

Core Insights - The skinny jean, once criticized, is showing signs of a potential comeback in fashion, with increased visibility on runways and social media [1][2] - Google Trends indicate a significant rise in interest for skinny jeans, particularly after influencer Alix Earle's collaboration with Frame [3] - Retailers like Reformation and American Eagle are experiencing increased customer searches for skinny jeans, suggesting a shift in consumer interest [4] Retail and Market Trends - Retail analysts note that the resurgence of skinny jeans is linked to styling trends, such as pairing them with high boots, which is gaining traction [5] - Major fashion designers are reinterpreting skinny styles with new materials and patterns, moving away from the traditional solid colors [6] - Levi Strauss CEO anticipates a broader return of skinny jeans in the future, indicating a shift in consumer preferences [6] Consumer Behavior - The fashion industry is witnessing a lack of consensus among consumers regarding denim styles, with many still favoring skinny jeans alongside baggy fits [8] - The potential restocking of skinny jeans could positively impact the apparel and footwear sectors, as it often leads to increased demand for complementary clothing items [7] - The fast-paced nature of fashion trends in the social media era allows for quick resurrections of styles, indicating that skinny jeans may coexist with other denim styles [8]

Company Performance - American Eagle Outfitters (AEO) closed at $15.82, reflecting a +0.25% change from the previous trading day's closing, which lagged behind the S&P 500's gain of 0.39% [1] - Over the past month, AEO shares experienced a loss of 5.62%, underperforming the Retail-Wholesale sector's gain of 8.29% and the S&P 500's gain of 1.7% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated to report an EPS of $0.50, representing an 18.03% decline compared to the same quarter of the previous year [2] - The Zacks Consensus Estimate for revenue projects net sales of $1.61 billion, down 3.95% from the year-ago period [2] Analyst Estimates - Recent changes to analyst estimates for AEO indicate short-term business trends, with positive revisions seen as a favorable sign for the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for stocks [4] Zacks Rank and Valuation - AEO currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.62% lower over the past month [5] - The company is trading at a Forward P/E ratio of 8.74, which is below the industry average of 15.87, indicating a discount [6] - AEO has a PEG ratio of 0.94, compared to the industry average of 1.26, suggesting favorable valuation relative to expected earnings growth [7] Industry Context - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 70, placing it in the top 28% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

American Eagle Outfitters, Inc. (AEO) has encountered a notable resistance level, prompting caution among investors from a technical standpoint. AEO has been trading below both the 200-day and 50-day simple moving averages (SMAs) for quite some time now, suggesting a bearish trend.AEO Trades Below 200 & 50-Day SMA Image Source: Zacks Investment ResearchCurrently, at $15.78, AEO remains below its 200-day and 50-day SMAs of $19.85 and $17.04, respectively, indicating a possible sustained downward trend.AEO st ...

American Eagle Outfitters (AEO) closed the most recent trading day at $17.18, moving -0.35% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.28%.The teen clothing retailer's shares have seen an increase of 4.42% over the last month, surpassing the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08%.The investment community will be ...

Shares of American Eagle Outfitters, Inc. (AEO) have risen 11.3% after it reported robust comparable sales (comps) from the start of the fourth quarter fiscal 2024  through Jan. 4, 2025, which increased in the low-single digits, ahead of its outlook of 1% growth. The company benefited from positive trends across American Eagle and Aerie brands during the holiday season.AEO witnessed record sales in December, benefiting from great product assortments and engaging customer experiences. As a result, management ...

American Eagle Outfitters, Inc. (AEO) is benefiting from its digital endeavors and other robust strategies, including the Powering Profitable Growth Plan. The company is gaining from brand strength and solid demand for its products that resonate well with customers. Buoyed by such tailwinds, management has announced sturdy holiday results. AEO witnessed record sales in December, benefiting from great product assortments and engaging customer experiences. Management raised its view for the fourth quarter of ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:agilon health, inc. (AGL) is a healthcare service company. The Zacks Consensus Estimate for its current year earnings has been revised 34.8% downward over the last 60 days.American Eagle Outfitters, Inc. (AEO) is a multi-brand specialty retailer company. The Zacks Consensus Estimate for its current year earnings has been revised 5.6% downward over the last 60 days.Archrock, Inc. (AROC) is an energy infrastructure company.The Zacks Con ...

I recommended a buy rating for American Eagle Outfitters (NYSE: AEO ) in Sep’24, as I saw an opportunity that investors could make a quick return (7%) over a short period of time. True enough, AEO share price appreciated above myI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propens ...