American Eagle Outfitters Inc (NYSE: AEO) Stock Forecast: Bearish Expectations Portend -87.97% Downside In 2025

The trading price of American Eagle Outfitters Inc (NYSE:AEO) closed lower on Friday, April 11, and closing at $10.64, -0.37% lower than its previous close.

Traders who pay close attention to intraday price movement should know that it fluctuated between $10.11 and $10.7065. The company’s P/E ratio in the trailing 12-month period was 6.35, while its 5Y monthly beta was 1.373. In examining the 52-week price action we see that the stock hit a 52-week high of $25.15 and a 52-week low of $9.44. Over the past month, the stock has lost -3.10% in value.

American Eagle Outfitters Inc, whose market valuation is $1.84 billion at the time of this writing, is expected to release its quarterly earnings report on 2025-Mar-11. The dividend yield on the company stock is 5.87%, while its Forward Dividend ratio is 0.62. Investors’ optimism about the company’s current quarter earnings report is understandable. Analysts have predicted the quarterly earnings per share to grow by 0.11 per share this quarter, however they have predicted annual earnings per share of 1.4 for current year and 1.48 for next year.

Analysts have forecast the company to bring in revenue of 1.08B for the current quarter, with the likely lows of 1.07B and highs of 1.1B. From the analysts’ viewpoint, the consensus estimate for the company’s annual revenue is 5.21B.

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.

A quick review shows that AEO’s price is currently -7.77% off the SMA20 and -16.97% off the SMA50. The RSI metric on the 14-day chart is currently showing 42.41, and weekly volatility stands at 11.98%. When measured over the past 30 days, the indicator reaches 7.49%. American Eagle Outfitters Inc (NYSE:AEO)’s beta value is currently sitting at 1.52, while the Average True Range indicator is currently displaying 0.93. With analysts defining $13-$20 as the low and high price targets, we arrive at a consensus price target of $16.5 for the trailing 12-month period. The current price is about -22.18% off the estimated low and -87.97% off the forecast high, based on this estimate. Investors will be thrilled if AEO’s share price rises to $16.5, which is the median consensus price. At that level, AEO’s share price would be -55.08% 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 -0.37% in the latest trading, and -54.74% in the past year. American Eagle Outfitters Inc has a P/E ratio of 6.35.

An evaluation of the daily trading volume of American Eagle Outfitters Inc (NYSE:AEO) indicates that the 3-month average is 6.38 million. However, this figure has increased over the past 10 days to an average of 10.92.

Currently, records show that 188.62 million of the company’s shares remain outstanding. The insiders hold 8.24% of outstanding shares, whereas institutions hold 101.82%. The stats also highlight that short interest as of 2025-03-31, stood at 15.56 million shares, resulting in a short ratio of 2.06 at that time. From this, we can conclude that short interest is 1899.00 of the company’s total outstanding shares. It is noteworthy that short shares in March were down slightly from the previous month’s figure, which was 16.4 million. However, since the stock’s price has seen -36.17% year-to-date, investors’ interest is likely to be reignited due to its potential to move even lower.

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