Is American Eagle Stock a Good Investment?
American Eagle Investment Advice | AEO |
- Examine American Eagle's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research American Eagle's leadership team and their track record. Good management can help American Eagle navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Specialty Retail space and any emerging trends that could impact American Eagle's business and its evolving consumer preferences.
- Compare American Eagle's performance and market position to its competitors. Analyze how American Eagle is positioned in terms of product offerings, innovation, and market share.
- Check if American Eagle pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about American Eagle's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in American Eagle Outfitters stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if American Eagle Outfitters is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine American Eagle Stock
Researching American Eagle's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.53. Some equities with similar Price to Book (P/B) outperform the market in the long run. American Eagle Outfitters last dividend was issued on the 10th of January 2025. The entity had 3:2 split on the 19th of December 2006.
To determine if American Eagle is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Eagle's research are outlined below:
| American Eagle generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| On 24th of January 2025 American Eagle paid $ 0.125 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Why American Eagle Outfitters is a Top Value Stock for the Long-Term |
American Eagle Quarterly Cost Of Revenue |
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American Eagle uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Eagle Outfitters. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Eagle's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact American Eagle's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Eagle's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-30 | 2024-04-30 | 0.2841 | 0.34 | 0.0559 | 19 | ||
2024-03-07 | 2024-01-31 | 0.5047 | 0.61 | 0.1053 | 20 |
American Eagle Target Price Consensus
American target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. American Eagle's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 11 | Buy |
Most American analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand American stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of American Eagle Outfitters, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAmerican Eagle Target Price Projection
American Eagle's current and average target prices are 13.36 and 21.00, respectively. The current price of American Eagle is the price at which American Eagle Outfitters is currently trading. On the other hand, American Eagle's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
American Eagle Market Quote on 25th of February 2025
Target Price
Analyst Consensus On American Eagle Target Price
American Eagle Analyst Ratings
American Eagle's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about American Eagle stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of American Eagle's financials, market performance, and future outlook by experienced professionals. American Eagle's historical ratings below, therefore, can serve as a valuable tool for investors.Know American Eagle's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Eagle is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Eagle Outfitters backward and forwards among themselves. American Eagle's institutional investor refers to the entity that pools money to purchase American Eagle's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Charles Schwab Investment Management Inc | 2024-12-31 | 2.9 M | Fmr Inc | 2024-12-31 | 2.9 M | Principal Financial Group Inc | 2024-12-31 | 2.8 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 2.6 M | Millennium Management Llc | 2024-12-31 | 2.5 M | Goldman Sachs Group Inc | 2024-12-31 | 2.3 M | Bank Of New York Mellon Corp | 2024-12-31 | 2.3 M | Northern Trust Corp | 2024-12-31 | 2.1 M | Norges Bank | 2024-12-31 | 2.1 M | Blackrock Inc | 2024-12-31 | 28.5 M | Vanguard Group Inc | 2024-12-31 | 21.2 M |
American Eagle's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.67 B.Market Cap |
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American Eagle's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.13 | |
| Return On Capital Employed | 0.24 | 0.29 | |
| Return On Assets | 0.15 | 0.12 | |
| Return On Equity | 0.24 | 0.21 |
Determining American Eagle's profitability involves analyzing its financial statements and using various financial metrics to determine if American Eagle is a good buy. For example, gross profit margin measures American Eagle's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Eagle's profitability and make more informed investment decisions.
American Eagle's Earnings Breakdown by Geography
Evaluate American Eagle's management efficiency
American Eagle Outfitters has Return on Asset of 0.077 % which means that on every $100 spent on assets, it made $0.077 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1328 %, implying that it generated $0.1328 on every 100 dollars invested. American Eagle's management efficiency ratios could be used to measure how well American Eagle manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of February 2025, Return On Capital Employed is likely to grow to 0.29, while Return On Tangible Assets are likely to drop 0.13. At this time, American Eagle's Total Assets are very stable compared to the past year. As of the 25th of February 2025, Non Current Assets Total is likely to grow to about 2.6 B, while Total Current Assets are likely to drop about 832.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.32 | 0.31 | |
| Tangible Book Value Per Share | 0.32 | 0.31 | |
| Enterprise Value Over EBITDA | 8.13 | 6.00 | |
| Price Book Value Ratio | 2.47 | 4.21 | |
| Enterprise Value Multiple | 8.13 | 6.00 | |
| Price Fair Value | 2.47 | 4.21 | |
| Enterprise Value | 114.1 M | 108.4 M |
American Eagle Outfitters benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Basic technical analysis of American Stock
As of the 25th of February, American Eagle shows the mean deviation of 2.1, and Risk Adjusted Performance of (0.08). American Eagle Outfitters technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.American Eagle's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Eagle insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Eagle's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Eagle insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jennifer Foyle over three weeks ago Acquisition by Jennifer Foyle of 8792 shares of American Eagle subject to Rule 16b-3 | ||
Sujatha Chandrasekaran over a month ago Acquisition by Sujatha Chandrasekaran of tradable shares of American Eagle subject to Rule 16b-3 | ||
Janice Page over three months ago Acquisition by Janice Page of tradable shares of American Eagle subject to Rule 16b-3 | ||
Noel Spiegel over a year ago Acquisition by Noel Spiegel of 2363 shares of American Eagle subject to Rule 16b-3 | ||
Noel Spiegel over a year ago Acquisition by Noel Spiegel of 799 shares of American Eagle subject to Rule 16b-3 | ||
Noel Spiegel over a year ago Acquisition by Noel Spiegel of 3010 shares of American Eagle subject to Rule 16b-3 |
American Eagle's Outstanding Corporate Bonds
American Eagle issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Eagle Outfitters uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Eagle Outfitters has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| AEP 5625 01 MAR 33 Corp BondUS025537AX91 | View | |
| US025537AP67 Corp BondUS025537AP67 | View | |
| US025537AR24 Corp BondUS025537AR24 | View | |
| AEP 3875 15 FEB 62 Corp BondUS025537AU52 | View | |
| AEP 595 01 NOV 32 Corp BondUS025537AW19 | View | |
| AEP 575 01 NOV 27 Corp BondUS025537AV36 | View | |
| AMERICAN ELEC PWR Corp BondUS025537AJ08 | View | |
| AMERICAN ELEC PWR Corp BondUS025537AM37 | View |
Understand American Eagle's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing American Eagle's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 2.1 | |||
| Coefficient Of Variation | (823.88) | |||
| Standard Deviation | 3.04 | |||
| Variance | 9.24 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.37) | |||
| Total Risk Alpha | (0.36) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 20.4 | |||
| Value At Risk | (4.31) | |||
| Potential Upside | 3.61 | |||
| Skewness | (1.13) | |||
| Kurtosis | 6.05 |
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 2.1 | |||
| Coefficient Of Variation | (823.88) | |||
| Standard Deviation | 3.04 | |||
| Variance | 9.24 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.37) | |||
| Total Risk Alpha | (0.36) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 20.4 | |||
| Value At Risk | (4.31) | |||
| Potential Upside | 3.61 | |||
| Skewness | (1.13) | |||
| Kurtosis | 6.05 |
Consider American Eagle's intraday indicators
American Eagle intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Eagle stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 260799.0 | |||
| Daily Balance Of Power | (0.71) | |||
| Rate Of Daily Change | 0.96 | |||
| Day Median Price | 13.69 | |||
| Day Typical Price | 13.58 | |||
| Price Action Indicator | (0.60) | |||
| Period Momentum Indicator | (0.54) | |||
| Relative Strength Index | 34.9 |
American Eagle Corporate Filings
F4 | 28th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 13th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 8th of January 2025 Other Reports | ViewVerify | |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
American Stock media impact
Far too much social signal, news, headlines, and media speculation about American Eagle that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Eagle news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Eagle relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Eagle's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Eagle alpha.
American Eagle Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards American Eagle can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
American Eagle Outfitters Historical Investor Sentiment
Investor biases related to American Eagle's public news can be used to forecast risks associated with an investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Eagle Outfitters. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
American Eagle's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Eagle and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average American Eagle news discussions. The higher the estimate score, the more favorable the investor's outlook on American Eagle.
American Eagle Maximum Pain Price Across May 16th 2025 Option Contracts
American Eagle's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of American Eagle close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of American Eagle's options.
American Eagle Corporate Directors
| Cary McMillan | Independent Director | Profile | |
| Sujatha Chandrasekaran | Independent Director | Profile | |
| Deborah Henretta | Independent Director | Profile | |
| Thomas Ketteler | Independent Director | Profile |
Already Invested in American Eagle Outfitters?
The danger of trading American Eagle Outfitters is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Eagle is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Eagle. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Eagle Outfitters is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether American Eagle Outfitters offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Eagle's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of American Eagle Outfitters Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Eagle Outfitters Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Eagle Outfitters. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Eagle. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Eagle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Dividend Share 0.5 | Earnings Share 1.17 | Revenue Per Share | Quarterly Revenue Growth (0.01) |
The market value of American Eagle Outfitters is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Eagle's value that differs from its market value or its book value, called intrinsic value, which is American Eagle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Eagle's market value can be influenced by many factors that don't directly affect American Eagle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between American Eagle's value and its price, as these two are different measures arrived at by various means. Investors typically determine if American Eagle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Eagle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.