Are American Eagle Outfitters Inc. (AEO) stocks a prudent buy?

American Eagle Outfitters Inc. [AEO] stock is trading at $23.08, down -0.56%. In order to assess the stock’s recent performance, you can check whether its short-term value is rising or falling. The AEO shares have gain 0.35% over the last week, with a monthly amount glided 4.72%, and seem to be holding up well over a long-time horizon.

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On 7, March 2024, American Eagle Outfitters Announces Three-Year Strategy to Power Profitable Growth; Clear Path to $5.7 to $6.0B in Revenue and an Approximate 10% Operating Margin Rate. In a post published today on Yahoo Finance, Building upon momentum and strong results achieved in 2023, American Eagle Outfitters, Inc. (NYSE: AEO) today unveiled its new Powering Profitable Growth plan, structured to deliver mid-to-high teens annual operating income expansion on 3-5% annual revenue growth over the next three years, and an approximate 10% operating margin.

From an analyst’s perspective:

American Eagle Outfitters Inc. [NYSE: AEO] stock has seen the most recent analyst activity on March 08, 2024, when Telsey Advisory Group reiterated its Market Perform rating and also boosted its price target to $25 from $22. Previously, Telsey Advisory Group reaffirmed its Market Perform rating on January 09, 2024, and elevated its price target to $22. On November 15, 2023, upgrade upgraded it’s rating to Neutral and revised its price target to $19 on the stock. Barclays upgraded its rating to a Overweight and increased its price target to $18 on August 01, 2023. Jefferies downgraded its rating to a Hold and reduced its price target to $16 on February 15, 2023. In a note dated August 01, 2022, Cowen downgraded an Market Perform rating on this stock and revised its target price from $25 to $13.

American Eagle Outfitters Inc. [AEO] stock has fluctuated between $9.95 and $26.44 over the past year. Currently, Wall Street analysts expect the stock to reach $26.91 within the next 12 months. American Eagle Outfitters Inc. [NYSE: AEO] shares were valued at $23.08 at the most recent close of the market. An investor can expect a potential return of 16.59% based on the average AEO price forecast.

Analyzing the AEO fundamentals

American Eagle Outfitters Inc. [NYSE:AEO] reported sales of 5.26B for the trailing twelve months, which represents a growth of 12.22%. Gross Profit Margin for this corporation currently stands at 0.37% with Operating Profit Margin at 0.07%, Pretax Profit Margin comes in at 0.05%, and Net Profit Margin reading is 0.03%. To continue investigating profitability, this company’s Return on Assets is posted at 0.05, Equity is 0.1 and Total Capital is 0.14. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.68.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 22.75 points at the first support level, and at 22.42 for the second support level. However, for the 1st resistance point, the stock is sitting at 23.39, and for the 2nd resistance point, it is at 23.71.

American Eagle Outfitters Inc. [AEO] reported earnings per share of $0.61 for its fiscal quarter that ended on 1/30/2024. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.5/share, meaning a difference of $0.11 and a surprise factor of 22.00%. By comparison, the stated earnings for the previous quarter ended on 10/30/2023 were $0.49 per share as compared to estimates of $0.48 per share, a difference of $0.01 representing a surprise of 2.10%.

Ratios To Look Out For

For context, American Eagle Outfitters Inc.’s Current Ratio is 1.61. In addition, the Quick Ratio stands at 0.89 and the Cash Ratio stands at 0.4. Considering the valuation of this stock, the price to sales ratio is 0.87, the price to book ratio is 2.62 and price to earnings (TTM) ratio is 26.87.

Transactions by insiders

Recent insider trading involved Foyle Jennifer M., Global Brand President-aerie, that happened on Feb 08 ’24 when 20000.0 shares were sold. Global Brand President-aerie, Foyle Jennifer M. completed a deal on Jan 19 ’24 to sell 24271.0 shares. Meanwhile, Director MCMILLAN CARY D sold 2363.0 shares on Jan 18 ’24.

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