I actually think the stock will go to $15 or lower. I have always done my shopping at either AE or ANF. But now when I go into these stores they are dead. The clothes have gotten worse and no one with the price of gas so high is going to spend $50 for a sweatshirt. Shoppers are realizing you can get better quality and prices at Macy's and other department stores with all the mark downs. I would love to buy here but I know the price is going lower from here. The retail market will only get worse.
I was very bullish on this stock back when insiders bought a boatload, but since then the run up in oil (and soon gasoline and home electricity/heating) bills has gotten out of hand. Reports have mall traffic down double digits the past two months and consumer confidence is plunging. I am afraid AEO is getting caught up in forces that are too macro oriented for them to control.