This quarterly beat shows that AEO is a good stock to buy and hold for the REST OF THIS ECONOMIC CYCLE. There is no reason to sell until the next economic downturn after the Fed has normalized interest rates over the course of the next few years, or longer. Remember, the more you trade stocks, the more you pay in taxes, and the more likely you are to sell off your winners and turn around and buy losers, so buy a good company that reports good numbers while paying a solid dividend, and hold it until the whole market starts to turn sour.
I am not promising that AEO will hit its 2007 high of $32.25 and maybe not even soon surpass its September 2012 high of $24.50, but this quarterly beat shows that they are answering the changes in the retail sector and are responding to the the new vogue of 'fast fashion' as quick and effectively as they can, while continuing to succeed in their shift to being an e-tailer as well as a retailer. Unless this company's management messes up and falls off course, this company should--at the very least--match or surpass the benchmark of the S&P 500 for the next half decade or longer.
Sentiment: Strong Buy
Careful, people were saying the same things as ARO fell from $25 to $18, and again as it fell from $16 to $14, then down to $12, and so on. As it fell below $5.00 per share all those investors lost the lions-share of their original investment thinking the trend couldn't continue and would re-balance. JCP investors made the same mistake stating the same point about Macy's size versus JCPenney's size. Likewise, those investors lost 60, 70 and even 80%, too.
Yep, this is a stock to hold and enjoy: those who bought at over $120 ($60 after the split), and sold at the low in the $30s gave up on a good profitable company. Those of us that jumped in down in the $30s can sit back and enjoy the ride the rest of the way up back to the previous highs.
I am going to ring the register now and lock in my 75% gain. I was investing based on merger hopes, and Office Depot/Office Maxx and Staples are now in talks. So I will sell since it's up on the rumor.
Sie haben gut gemacht, Sammler! I hope you're still long the stock. I am going to sell now and take my large gain and move on. There may be even more value to pull out if they do merge, but I have almost doubled my money. Hope you're in the position for the same.
It's been almost four years since my original post on this string, and almost five years of being long this stock. I'm just posting to bump this back to the top of the string, and emphasize that dividends investing is still the way to go. Also, as gas prices fall, this stock should rise, as lower fuel costs increase margins and cheaper gas brings out more apparel shoppers.
WFM continues higher yet. I think the bears started finding other plays; we could get a small squeeze over the next day or two. Over the longer term, Whole Foods is a great company to own here. I am letting this one ride because I expect higher highs and higher lows. It is, and will continue to, be a bullish chart and a growing company.