American Eagle Outfitters, Inc. (AEO) Buy or Sell Stock Guide

Last updated: May 12, '19

Are you looking for the analysis of American Eagle Outfitters, Inc. (AEO) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 3 reasons to buy and 6 reasons to sell AEO stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AEO stock:

  • Is AEO a buy or a sell?
  • Should I sell or hold AEO stock today?
  • Is AEO a good buy / investment?
  • What are AEO analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AEO stock:

1. AEO forward dividend yield is 2.48%, higher than the industry (0.58%) and sector (0.51%) forward dividend yields. See AEO forward dividend chart.

2. AEO average analyst rating is Buy. See AEO analyst rating chart.

3. AEO average analyst price target ($24.29) is above its current price ($21.79). See AEO price target chart.

Now that you understand the bull case, let’s look at the reasons to sell AEO stock (i.e., the bear case):

1. AEO quarterly revenue growth was 1.30%, lower than the industry and sector average revenue growth (3.33% and 4.40%, respectively). See AEO revenue growth chart.

2. AEO profitability is declining. The YoY profit margin change was -0.51percentage points. See AEO profitability chart.

3. AEO forward P/E ratio is 13.53, and it’s high compared to its industry peers’ P/E ratios. See AEO forward P/E ratio chart.

4. AEO Price/Sales ratio is 1.01, and it’s high compared to its industry peers’ P/S ratios. See AEO forward Price/Sales ratio chart.

5. AEO PEG ratio (P/E adjusted for growth) is 1.93, and it’s high compared to its industry peers’ PEG ratios. See AEO PEG chart.

6. AEO short interest (days to cover the shorts) ratio is 4.13. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AEO short interest ratio chart.

Now let's look at the key statistics for AEO:

Metrics AEO
Price $18.58
Average Price Target / Upside $24.29 / 30.73%
Average Analyst Rating Buy
Industry Apparel Stores
Sector Consumer Cyclical
Number of Employees 40,700
Market Cap $3.53B
Forward P/E Ratio 11.66
Price/Book Ratio 0.87
PEG 1.7
Revenue (TTM) $4.04B
YoY Quarterly Revenue Growth 1.3%
Profit Margin 6.49%

What are your thoughts on AEO?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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