American Eagle Outfitters, Inc. [NYSE:AEO]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For American Eagle Outfitters, Inc. [AEO] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in January. On average, stock market experts give AEO an Outperform rating. Its stock price has been found in the range of 17.00 to 29.88. This is compared to its latest closing price of $21.00.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for American Eagle Outfitters, Inc. [AEO] is sitting at 2.07. This is compared to 1 month ago, when its average rating was 2.07.
For the quarter ending in Jan-19 American Eagle Outfitters, Inc. [AEO] generated $1.24 billion in sales. That’s 0.90% lower than the average estimate of $1.26 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 30 May (In 76 Days).
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 +8.56 and its Gross Margin at +31.74, this company’s Net Margin is now 6.40%. 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 26.52, and its Return on Invested Capital has reached 16.00%. Its Return on Equity is 16.66, and its Return on Assets is 10.97. 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 6.18. The Enterprise Value to Sales for this firm is now 0.78. American Eagle Outfitters, Inc. [AEO] has a Price to Book Ratio of 2.50, a Price to Cash Flow Ratio of 8.02 and P/E Ratio of 14.09. 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 $93,257 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 46.02 and its Total Asset Turnover is 2.04. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.18 and its Current Ratio is 2.00. 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 185.70M shares outstanding, amounting to a total market cap of $3.90B. Its stock price has been found in the range of 17.00 to 29.88. At its current price, it has moved by -30.67% from its 52-week high, and it has moved 21.85% from its 52-week low.
This stock’s Beta value is currently 0.76, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.74. 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.