For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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.
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 6.7X for the current fiscal year compared to the Retail - Apparel and Shoes industry's P/E of 13.6X. Additionally, AEO has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 4.5X. Value investors should also note AEO's Price/Sales ratio of 0.4X.
A company's earnings performance is important for value investors as well. For fiscal 2025, eight analysts revised their earnings estimate higher in the last 60 days for AEO, while the Zacks Consensus Estimate has increased $0.02 to $1.70 per share. AEO also holds an average earnings surprise of 12.6%.
AEO should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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