Here's Why American Eagle Outfitters (AEO) is a Strong Growth Stock
American Eagle OutfittersAmerican Eagle Outfitters(US:AEO) Zacks Investment Research·2024-04-10 14:50

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1][5] Zacks Style Scores - Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each designed to help investors identify stocks with the potential to outperform the market [2][3][4] - Value Score focuses on identifying undervalued stocks using financial ratios [2] - Growth Score assesses a company's financial health and future growth potential [2] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [3] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [4] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5][6] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [6] Company Spotlight: American Eagle Outfitters (AEO) - American Eagle Outfitters is a specialty retailer targeting the 15-25 age demographic, offering casual apparel and accessories [7] - AEO holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, indicating strong investment potential [7][8] - The company is projected to achieve a year-over-year earnings growth of 12.5% for the current fiscal year, with upward revisions from analysts [7]