American Eagle Outfitters Stock Alpha and Beta Analysis

AEO Stock  USD 11.06  0.08  0.73%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Eagle Outfitters. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Eagle over a specified time horizon. Remember, high American Eagle's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to American Eagle's market risk premium analysis include:
Beta
1.22
Alpha
(0.51)
Risk
2.61
Sharpe Ratio
(0.26)
Expected Return
(0.68)
Please note that although American Eagle alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, American Eagle did 0.51  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of American Eagle Outfitters stock's relative risk over its benchmark. American Eagle Outfitters has a beta of 1.22  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, American Eagle will likely underperform. At this time, American Eagle's Price Book Value Ratio is very stable compared to the past year. As of the 15th of March 2025, Price Fair Value is likely to grow to 4.21, while Book Value Per Share is likely to drop 0.31.

Enterprise Value

108.41 Million

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out American Eagle Backtesting, American Eagle Valuation, American Eagle Correlation, American Eagle Hype Analysis, American Eagle Volatility, American Eagle History and analyze American Eagle Performance.

American Eagle Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Eagle market risk premium is the additional return an investor will receive from holding American Eagle long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Eagle. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate American Eagle's performance over market.
α-0.51   β1.22

American Eagle expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of American Eagle's Buy-and-hold return. Our buy-and-hold chart shows how American Eagle performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

American Eagle Market Price Analysis

Market price analysis indicators help investors to evaluate how American Eagle stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Eagle shares will generate the highest return on investment. By understating and applying American Eagle stock market price indicators, traders can identify American Eagle position entry and exit signals to maximize returns.

American Eagle Return and Market Media

The median price of American Eagle for the period between Sun, Dec 15, 2024 and Sat, Mar 15, 2025 is 16.14 with a coefficient of variation of 11.88. The daily time series for the period is distributed with a sample standard deviation of 1.83, arithmetic mean of 15.42, and mean deviation of 1.53. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
 
American Eagle dividend paid on 24th of January 2025
01/24/2025
1
Acquisition by Jennifer Foyle of 8792 shares of American Eagle subject to Rule 16b-3
01/29/2025
2
Is it still safe to fly Simon Calder explains all you need to know after Delta Air Lines plane crash
02/18/2025
3
Is Most-Watched Stock American Eagle Outfitters, Inc. Worth Betting on Now
02/24/2025
4
Bulk of Chesapeakes Greenbrier Mall sold at auction
02/28/2025
5
Stocks In Red As Investors Assess Tariffs, Global Trade War
03/04/2025
6
American Eagle Outfitters Ascends But Remains Behind Market Some Facts to Note
03/05/2025
7
Kroger Surpasses Q4 Earnings Estimates
03/06/2025
8
Will American Eagle Beat Estimates Again in Its Next Earnings Report
03/07/2025
9
American Eagle Outfitters, Inc. Shares Sold by Investors Research Corp
03/10/2025
10
Faraday Copper Reports 2024 Financial Results
03/11/2025
11
American Eagle sees sales starting to slow amid economic challenges for the retail customer
03/12/2025

About American Eagle Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including American or other stocks. Alpha measures the amount that position in American Eagle Outfitters has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2014 2020 2024 2025 (projected)
Dividend Yield0.0380.02060.03560.0249
Price To Sales Ratio0.570.770.621.13

American Eagle Upcoming Company Events

As portrayed in its financial statements, the presentation of American Eagle's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Eagle's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of American Eagle's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of American Eagle. Please utilize our Beneish M Score to check the likelihood of American Eagle's management manipulating its earnings.
6th of March 2024
Upcoming Quarterly Report
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22nd of May 2024
Next Financial Report
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31st of January 2024
Next Fiscal Quarter End
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6th of March 2024
Next Fiscal Year End
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31st of October 2023
Last Quarter Report
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31st of January 2023
Last Financial Announcement
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Align your risk with return expectations

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
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:
American Eagle technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of American Eagle technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Eagle trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...