Here Are Reasons Why American Eagle Outfitters Inc (NYSE: AEO) Is A Great Choice Now

The trading price of American Eagle Outfitters Inc (NYSE:AEO) remained unchanged on Tuesday, December 10, and closing at $17.70.

Traders who pay close attention to intraday price movement should know that it fluctuated between $17.31 and $18.085. The company’s P/E ratio in the trailing 12-month period was 15.16, while its 5Y monthly beta was 1.5. In examining the 52-week price action we see that the stock hit a 52-week high of $26.44 and a 52-week low of $16.88. Over the past month, the stock has lost -5.50% in value.

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American Eagle Outfitters Inc, whose market valuation is $3.40 billion at the time of this writing, is expected to release its quarterly earnings report in January. The dividend yield on the company stock is 2.82%, while its Forward Dividend ratio is 0.50. Investors’ optimism about the company’s current quarter earnings report is understandable. Analysts have predicted the quarterly earnings per share to grow by 0.47 per share this quarter, however they have predicted annual earnings per share of 1.65 for current year and 1.84 for next year.

Analysts have forecast the company to bring in revenue of 1.61B for the current quarter, with the likely lows of 1.6B and highs of 1.63B. From the analysts’ viewpoint, the consensus estimate for the company’s annual revenue is 5.34B.

On the technical side, indicators suggest AEO has a 100% Sell on average for the short term. According to the data of the stock’s medium term indicators, the stock is currently averaging as a 100% Sell, while an average of long term indicators suggests that the stock is currently 100% Sell.

Here is the average analyst rating on the stock as represented by 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock should be considered as either strong buy or strong sell respectively. The number of analysts that have assigned AEO a recommendation rating is 8. Out of them, 4 rate it a Hold, while 3 recommend Buy, whereas 0 assign an Overweight rating. 0 analyst(s) have tagged American Eagle Outfitters Inc (AEO) as Underweight, while 1 advise Sell. Analysts have rated the stock Hold, likely urging investors to take advantage of the opportunity to add to their holdings of the company’s shares.

If we dig deeper into the stock’s outlook, we see that the stock’s PEG is 1.62, which symbolizes a positive outlook. A quick review shows that AEO’s price is currently -3.30% off the SMA20 and -9.27% off the SMA50. The RSI metric on the 14-day chart is currently showing 42.58, and weekly volatility stands at 4.71%. When measured over the past 30 days, the indicator reaches 4.12%. American Eagle Outfitters Inc (NYSE:AEO)’s beta value is currently sitting at 1.49, while the Average True Range indicator is currently displaying 0.93. With analysts defining $20-$35 as the low and high price targets, we arrive at a consensus price target of $27.5 for the trailing 12-month period. The current price is about -12.99% off the estimated low and -97.74% off the forecast high, based on this estimate. Investors will be thrilled if AEO’s share price rises to $27.5, which is the median consensus price. At that level, AEO’s share price would be -55.37% below current price.

To see how American Eagle Outfitters Inc stock has been performing in comparison to its peers in the industry, here are the numbers: AEO stock’s performance was 0.00% in the latest trading, and -12.25% in the past year. American Eagle Outfitters Inc has a P/E ratio of 15.16.

An evaluation of the daily trading volume of American Eagle Outfitters Inc (NYSE:AEO) indicates that the 3-month average is 4.65 million. However, this figure has increased over the past 10 days to an average of 8.11.

Currently, records show that 192.10 million of the company’s shares remain outstanding. The insiders hold 8.09% of outstanding shares, whereas institutions hold 96.31%. The stats also highlight that short interest as of 2024-11-15, stood at 14.98 million shares, resulting in a short ratio of 4.02 at that time. From this, we can conclude that short interest is 1476.00 of the company’s total outstanding shares. It is noteworthy that short shares in November were down slightly from the previous month’s figure, which was 16.32 million. However, since the stock’s price has seen -16.35% year-to-date, investors’ interest is likely to be reignited due to its potential to move even lower.

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