American Eagle Outfitters, Inc. [NYSE: AEO] shares went higher by 0.89% from its previous closing of $14.60, now trading at the price of $14.73, also adding 0.13 points. Is AEO stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 3.81 million contracts. Compared to the average trading volume of AEO shares, the company saw a far better performance. Moreover, the stock has a 155.47M float and a +3.15% run over in the last seven days. AEO share price has been hovering between $24.30 and $13.66 lately, and is definitely worthy of attention.

American Eagle Outfitters, Inc. [NYSE:AEO]: Analyst Rating and Earnings

Its stock price has been found in the range of 13.66 to 24.30. This is compared to its latest closing price of $14.60.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 4 Mar (In 50 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 +8.39 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 3.90. The Enterprise Value to Sales for this firm is now 0.47. 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 9.67. 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 169.22M shares outstanding, amounting to a total market cap of $2.49B. Its stock price has been found in the range of 13.66 to 24.30. At its current price, it has moved down by -39.38% from its 52-week high, and it has moved up 7.83% from its 52-week low.

This stock’s Beta value is currently 0.84, which indicates that it is 3.25% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.44. 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.