The share price of American Eagle Outfitters, Inc. [NYSE: AEO] inclined by $12.97, presently trading at $12.81. The company’s shares saw -0.62% loss compared to the lowest price in the period of the last 52 weeks, set at $12.89 recorded on 02/27/20. The last few days have been tough to the share price as AEO fall by -13.21% during the last week, even though the stock is still down by -14.94% compared to -1.95 of all time high it touched on 02/21/20. However, the stock had a poor performance during the past 3 months, roughly losing -13.03%, while additionally dropping -36.58% during the last 12 months. American Eagle Outfitters, Inc. is said to have a 12-month price target set at $16.00. That means that the stock has a strong potential to acquire 3.19% increase from the current trading price.
American Eagle Outfitters, Inc. [NYSE:AEO]: Analyst Rating and Earnings
This is compared to its latest closing price of $12.97.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on 03/04/2020.
Fundamental Analysis of American Eagle Outfitters, Inc. [AEO]
Now let’s turn to look at profitability: with a current Operating Margin for American Eagle Outfitters, Inc. [AEO] sitting at +8.39 and its Gross Margin at +32.69, this company’s Net Margin is now 6.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 26.73, and its Return on Invested Capital has reached 19.70%. Its Return on Equity is 20.67, and its Return on Assets is 13.67. These metrics all suggest that American Eagle Outfitters, Inc. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 3.85. The Enterprise Value to Sales for this firm is now 0.46. American Eagle Outfitters, Inc. [AEO] has a Price to Book Ratio of 2.80, a Price to Cash Flow Ratio of 8.16 and P/E Ratio of 8.41. These metrics all suggest that American Eagle Outfitters, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, American Eagle Outfitters, Inc. [AEO] earns $89,683 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 46.99 and its Total Asset Turnover is 2.11. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.15 and its Current Ratio is 1.93. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
American Eagle Outfitters, Inc. [AEO] has 166.53M shares outstanding, amounting to a total market cap of $2.13B. Its stock price has been found in the range of 12.89 to 24.30. At its current price, it has moved down by -47.28% from its 52-week high, and it has moved down -0.62% from its 52-week low.
This stock’s Beta value is currently 0.82, which indicates that it is 6.11% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 32.36. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is American Eagle Outfitters, Inc. [AEO] a Reliable Buy?
Shares of American Eagle Outfitters, Inc. [AEO], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.