Critical Insights From American Eagle Outfitters Analyst Ratings: What You Need To Know

American Eagle Outfitters, Inc. -0.50%

American Eagle Outfitters, Inc.

AEO

19.83

-0.50%

Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on American Eagle Outfitters (NYSE:AEO) in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 5 1 0
Last 30D 0 1 0 0 0
1M Ago 0 1 0 0 0
2M Ago 0 1 4 1 0
3M Ago 1 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $26.2, along with a high estimate of $32.00 and a low estimate of $19.00. Surpassing the previous average price target of $23.38, the current average has increased by 12.06%.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of American Eagle Outfitters by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Adrienne Yih Barclays Raises Overweight $32.00 $30.00
Matthew Boss JP Morgan Announces Overweight $31.00 -
Jonna Kim TD Cowen Raises Market Perform $23.00 $21.00
Alex Straton Morgan Stanley Raises Underweight $19.00 $16.00
Adrienne Yih Barclays Raises Overweight $30.00 $27.00
Dana Telsey Telsey Advisory Group Raises Market Perform $25.00 $22.00
Dana Telsey Telsey Advisory Group Maintains Market Perform $22.00 -
Christopher Nardone B of A Securities Raises Neutral $25.00 $21.00
Paul Lejuez Citigroup Raises Neutral $26.00 $23.00
Jay Sole UBS Raises Buy $29.00 $27.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to American Eagle Outfitters. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of American Eagle Outfitters compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of American Eagle Outfitters's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of American Eagle Outfitters's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on American Eagle Outfitters analyst ratings.

Get to Know American Eagle Outfitters Better

American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the vast majority of its revenue from the United States.

Breaking Down American Eagle Outfitters's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: American Eagle Outfitters's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2024, the company achieved a revenue growth rate of approximately 12.22%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: American Eagle Outfitters's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.38%, the company may face hurdles in effective cost management.

Return on Equity (ROE): American Eagle Outfitters's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.36%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): American Eagle Outfitters's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.18%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: American Eagle Outfitters's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.68.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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