Why American Eagle Outfitters (AEO) is a Top Growth Stock for the Long-Term

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

American Eagle Outfitters (AEO)

Based in Pittsburgh, PA, American Eagle Outfitters Inc. is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15–25 years. American Eagle, along with its subsidiaries, engages in the designing and marketing of casual clothing. The company’s assortment includes jeans, cargo pants, graphic T-shirts as well as a range of accessories, outerwear and footwear.

AEO sits at a Zacks Rank #1 (Strong Buy), holds a Growth Style Score of A, and has a VGM Score of A. Earnings and sales are forecasted to increase 12.5% and 3.3% year-over-year, respectively.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.21 to $1.71 per share. AEO boasts an average earnings surprise of 22.7%.

American Eagle Outfitters is also cash rich. The company has generated cash flow growth of 4%, and is expected to report cash flow expansion of 32% in 2025.

AEO should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

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