Last Updated: 16 Sep 2024
Executive Summary
American Eagle Outfitters Inc. (AEO) is a specialty retailer of clothing, accessories, and personal care products. The company has a market capitalization of $3.79 billion and trades on the NYSE under the ticker symbol AEO. The latest stock price is $19.78.
Company Overview
American Eagle Outfitters was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania. The company operates over 1,000 stores in the United States, Canada, and Mexico. American Eagle Outfitters also sells its products online and through its catalog.
The company's target market is young adults aged 15 to 25. American Eagle Outfitters offers a wide variety of clothing, accessories, and personal care products that are designed to appeal to this demographic.
Fundamental Analysis
American Eagle Outfitters has been reporting strong financial results in recent quarters. The company's revenue and earnings have both been growing steadily. In the most recent quarter, American Eagle Outfitters reported revenue of $541.5 million and earnings per share of $1.25.
The company's gross profit margin and operating margin have also been improving in recent quarters. This indicates that American Eagle Outfitters is becoming more efficient at managing its costs.
American Eagle Outfitters has a strong balance sheet with plenty of cash on hand and low levels of debt. The company also has a strong track record of generating free cash flow.
Technical Analysis
The technical analysis of American Eagle Outfitters' stock price shows that the stock is in a bullish trend. The stock price has been making higher highs and higher lows in recent months. The stock is also above its 50-day and 200-day moving averages.
The relative strength index (RSI) is a technical indicator that measures the momentum of a stock price. The RSI is currently above 50, which indicates that American Eagle Outfitters' stock is in a bullish trend.
Short Term Outlook
The short-term outlook for American Eagle Outfitters' stock is positive. The stock is in a bullish trend and is trading above its moving averages. The RSI is also above 50, which indicates that the stock has momentum.
Long Term Outlook
The long-term outlook for American Eagle Outfitters' stock is also positive. The company has a strong track record of growth and profitability. The company also has a strong balance sheet and a loyal customer base.
Analyst Recommendations
The majority of analysts who cover American Eagle Outfitters' stock have a buy rating on the stock. The average analyst target price is $23.78.
Conclusion
American Eagle Outfitters is a well-run company with a strong track record of growth and profitability. The company's stock is in a bullish trend and is trading at a reasonable valuation. The short-term and long-term outlook for American Eagle Outfitters' stock is positive.
