American Eagle Stock Price and Research (NYSE: AEO)
American Eagle (NYSE: AEO) is a mid cap company that operates within the specialty retail industry. Its market cap is $5 billion today and the total one-year return is 116.89% for shareholders.
American Eagle stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: American Eagle reported a recent EPS growth rate of 76.67%. That's above the specialty retail industry average of 27.35%. That's a great sign. American Eagle's earnings growth is outpacing competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the specialty retail industry is 24.51. And American Eagle's ratio comes in at 19.67. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for American Eagle stock is 0%. That's below the specialty retail industry average of 110.21%. The company is less leveraged.
✓ Free Cash Flow per Share Growth : American Eagle has increased its FCF per share over the last year relative to its competitors. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins : The profit margin of American Eagle comes in at 7.65% today. And generally, the higher, the better. We also like to see this ratio above competitors. American Eagle's profit margin is above the specialty retail average of 5.08%. So that's a positive indicator for investors.
✗ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for American Eagle is 16.66% and that's below the industry average ROE of 20.94%.
American Eagle stock passes five of our six key metrics today. That's why our Investment U Stock Grader gives it a Strong Buy.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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