Why American Eagle Outfitters (AEO) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
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 #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Retail - Apparel and Shoes industry's P/E of 14X, shares of American Eagle Outfitters are trading at a forward P/E of 14.6X. AEO also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 8.9X, and a Price/Sales ratio of 0.8X.
A company's earnings performance is important for value investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for AEO, while the Zacks Consensus Estimate has increased $0.04 to $1.33 per share. AEO also holds an average earnings surprise of 23%.
Investors should take the time to consider AEO for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
