67.6 F
New York
Wednesday, October 21, 2020

The Rejuvenation of American Eagle Outfitters Inc. (NYSE:AEO)

Must read

The Rejuvenation of Stitch Fix Inc. (NASDAQ:SFIX)

Stitch Fix Inc. (SFIX) shares are trading at higher $35.27 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Renewed Optimism is Surrounding Simon Property Group Inc. (NYSE:SPG)

Simon Property Group Inc. (SPG) shares are trading at higher $64.46 and the avg recommendation for the stock is Moderate Buy, while the current...

ING Groep N.V. (NYSE:ING) is Gaining Momentum on Earnings Catalyst

ING Groep N.V. (ING) shares are trading at higher $7.56 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Is Now the Time to Invest in Ameri Holdings Inc. (NASDAQ:AMRH)?

Ameri Holdings Inc. (AMRH) shares are trading at lower $1.44. To add more color to this target, the company’s high over the last year...

American Eagle Outfitters Inc. (AEO) shares are trading at lower $15.46 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $14.88.

To add more color to this target, the company’s high over the last year is $16.83 and the low is $6.53. Over the last 52 weeks, AEO is up 6.77% while the S&P 500 is up 18.03%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AEO reported a profit of $265.2 million. American Eagle Outfitters Inc. also saw revenues increase to $883.51 million. In addition, AEO has free cash flow of -$97.82 million as of 07-2020. The company’s EBITDA came in at $27.65 million which compares well with its peers.

AEO booked profit margins of -4.90%, its Return on Equity (ROE) is -16.50%, and its Return on Assets is -5.30%. All told, it is clear that, AEO needs to be on your watchlist.

Find out when AEO reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AEO has a short ratio of 5.00 and outstanding shares of 166.32M.

Company Outlook

AEO has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -1.12. American Eagle Outfitters Inc. AEO also noted assets of $3.63 billion at the end of the last quarter. Investors should also keep an eye on sector updates as AEO has historically followed its peers on positive news.

All told, American Eagle Outfitters Inc. AEO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AEO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

American Eagle Outfitters Inc. AEO is now commanding a market cap of 2.49B and a float of 154.46M. AEO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AEO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AEO, either long or short, and we have not been compensated for this article.

Latest article

Renewed Optimism is Surrounding Trine Acquisition Corp. (NYSE:TRNE)

Trine Acquisition Corp. (TRNE) shares are trading at higher $11.12. To add more color to this target, the company’s high over the last year...

Envista Holdings Corporation (NYSE:NVST) is Waving the Bull Flag

Envista Holdings Corporation (NVST) shares are trading at higher $26.17 and the avg recommendation for the stock is Strong Buy, while the current analyst...

The Forecast Just Changed on SunLink Health Systems Inc. (AMEX:SSY)

SunLink Health Systems Inc. (SSY) shares are trading at higher $1.29. To add more color to this target, the company’s high over the last...

Overstock.com Inc. (NASDAQ:OSTK) on the Path to Ruin

Overstock.com Inc. (OSTK) shares are trading at lower $71.42 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Is Now the Time to Invest in Alphatec Holdings Inc. (NASDAQ:ATEC)?

Alphatec Holdings Inc. (ATEC) shares are trading at higher $10.00 and the avg recommendation for the stock is Strong Buy, while the current analyst...