No, this stock is not cheap! Aeropostale is trading at 17x trailing earnings. Meanwhile, Macy's is trading at 11.5x trailing earnings, Men's Wearhouse is trading at only 12x trailing earnings, Kohl's is trading at just 9.5x trailing earnings, True Religion Jeans is trading at 13x trailing earnings (and Management is looking for a buyer to take them private at the same time), Joseph A. Bank is trading at 12.5x trailing earnings, Dillard's is trading at 12.5x trailing earnings, and Casual Male Retail Group is trading at just 6x trailing earnings. Also, American Eagle Outfitters is trading at 21x earnings, but it raised estimates and pays a nice dividend.
Oh, did I mention that Aeropostale cut earnings forcasts for the coming quarter?... So there's no reason to pay more for the higher multiple on ARO.