Analysts rate American Eagle Outfitters Inc. (AEO:NYE) with a Buy, $31 Target

STA Research
by: STA Research
American Eagle Outfitters Inc. stock

Analysts rate American Eagle Outfitters Inc. stock with a consensus Buy rating and a 12-month average target price of $31.25 per share.

JP Morgan & Company maintained American Eagle Outfitters Inc. with an Overweight rating, and lowered the target price to $29 from $32 on the company’s stock.

Based on the American Eagle Outfitters Inc stock forecasts from 10 analysts, the average analyst target price for American Eagle Outfitters Inc is USD 31.25 over the next 12 months. American Eagle Outfitters Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of American Eagle Outfitters Inc is Bullish , which is based on 7 positive signals and 3 negative signals. At the last closing, American Eagle Outfitters Inc’s stock price was USD 16.51American Eagle Outfitters Inc’s stock price has changed by +0.14% over the past week, -0.95% over the past month and -50.24% over the last year.

What we like:

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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