American Eagle Outfitters Upgraded To Strong Buy

For today's bulletin, we take a look at American Eagle Outfitters, Inc.(AEO). American Eagle Outfitters, Inc. is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters and Aerie brands. The company sources, designs, and markets a versatile line of timeless and relaxed clothing classics like jeans, khakis, and T-shirts under its American Eagle Outfitters and AE brand names for exclusive sale in its stores. The company is focused on several core brand and merchandising strategies to differentiate the company from competition, improve profitability and increase sales.

We see recovery for some retailers lately, and once again we note that many of the big sector names have recently been updated by our models. For today, we see that mall staple American Eagle is ranked among our top-five upgrades.

The company had a good holiday season, which included reports of decent comparable store sales growth. In addition, the company has been doing a decent job with on-line sales. As we note constantly whenever we discuss retailers, the digital market is key. Failure to keep up in this critical arena is wreaking havoc with the share prices of those who cannot handle it.

American Eagle is due to report its next quarterly results this Thursday. Analysts are expecting Q4 EPS to come in around $0.42-0.44/share. If they can make that number, it will represent an improvement of @13% year-over-year. Of course, the company does have a record of surprises, and often improves on the consensus number by just a bit. Analysts are expecting a decent boost in revenue year-over-year as well.

Below is our latest data for American Eagle Outfitters, one of our top STRONG BUY upgrade for the day.

ValuEngine updated its recommendation from BUY to STRONG BUY for American Eagle Outfitters on 2018-03-02. Based on the information we have gathered and our resulting research, we feel that American Eagle Outfitters has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Company Size.
 

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

20.49 1.09%

3-Month

20.77 2.47%

6-Month

21.47 5.90%

1-Year

22.93 13.11%

2-Year

25.49 25.78%

3-Year

26.67 31.58%

Disclosure: None.

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