American Eagle Outfitters Stock (NYSE: AEO)

American Eagle Outfitters (NYSE:AEO) Stock, Quote.Headers.trade-ideas

American Eagle Outfitters

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.

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American Eagle Outfitters is suing Amazon.com for trademark infringement and filed a complaint in Manhattan federal court.

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American Eagle Outfitters, Inc. (NYSE: AEO) remains well-poised to tap the positive trends in the fashion arena, thanks to its digital endeavors and other robust strategies, including the Powering Profitable Growth plan.

American Eagle&#39;s Brands &amp; Growth Efforts Seem Good: Apt to Hold Stock

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American Eagle Outfitters, Inc. Common Stock

American Eagle Outfitters Inc

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In the preceding three months, 9 analysts have released ratings for American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>), presenting a wide array of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated American Eagle Outfitters and provided 12-month price targets. The average target is $25.56, accompanied by a high estimate of $34.00 and a low estimate of $22.00. A 6.1% drop is evident in the current average compared to the previous average price target of $27.22. 
<img src="https://www.benzinga.com/files/images/story/2024/1727892117_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive American Eagle Outfitters. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$23.00</td>
<td>$23.00</td>
</tr>
<tr>
<td>Matthew Boss</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$29.00</td>
<td>$31.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$23.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Adrienne Yih</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$26.00</td>
<td>$32.00</td>
</tr>
<tr>
<td>Jay Sole</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$34.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Jonna Kim</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Hold</td>
<td>$23.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Paul Lejuez</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$22.00</td>
<td>$24.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to American Eagle Outfitters. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Eagle Outfitters compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of American Eagle Outfitters's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of American Eagle Outfitters's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/AEO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on American Eagle Outfitters analyst ratings.</a>
<h2>All You Need to Know About American Eagle Outfitters</h2>
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.
<h3>American Eagle Outfitters: A Financial Overview</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining American Eagle Outfitters's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.51% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: American Eagle Outfitters's net margin is impressive, surpassing industry averages. With a net margin of 5.98%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): American Eagle Outfitters's ROE stands out, surpassing industry averages. With an impressive ROE of 4.48%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): American Eagle Outfitters's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.18%, the company showcases efficient use of assets and strong financial health.
Debt Management: American Eagle Outfitters's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.78.
<h2>How Are Analyst Ratings Determined?</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Verdict: American Eagle Outfitters In The Eyes Of 9 Experts

Telsey Advisory Group analyst Dana Telsey maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Market Perform and maintains $23 price target.

Price Target

Telsey Advisory Group Maintains Market Perform on American Eagle Outfitters, Maintains $23 Price Target

American Eagle Outfitters, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) shares traded higher on Thursday. The company reportedly sued Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) for trademark infringement and filed a complaint <a href="https://www.benzinga.com/topic/apparel">in Manhattan federal court</a>.
The company alleges that Amazon used its Aerie clothing line branding in search results, misleading consumers to &#8220;inferior quality knock-offs,&#8221; reported Reuters.
As per the report, the company seeks triple the actual damages, punitive damages, and an injunction to stop further infringements, along with additional remedies.
Notably, as per CNBC, American Eagle clarified that it did not authorize Amazon to sell products from its Aerie line, which includes yoga pants, lingerie, loungewear, and other apparel. The company further added that they declined Amazon&#8217;s request for the rights to sell Aerie products on its platform.
CNBC further added that the complaint states that, &#8220;These ads are intended to (and do) trick customers into thinking that by clicking the provided link, they will be able to &#8216;Shop Aerie&#8217; or &#8216;Save on Offline by Aerie&#8217; on the &#8216;Official Amazon Site.'&#8221;
&#8220;These statements are patently false because customers cannot shop for Aerie products on Amazon.&#8221;
Last month, American Eagle Outfitters reported second-quarter&nbsp;adjusted EPS of $0.39,&nbsp;beating&nbsp;the analyst consensus of&nbsp;$0.38.&nbsp;Revenues rose&nbsp;8%&nbsp;Y/Y to&nbsp;$1.29 billion, missing <a target="_blank" href="https://www.benzinga.com//node/40625741" rel="noreferrer noopener">the street view of&nbsp;$1.31 billion.</a>
Price Action: American Eagle shares are up 1.69% at $21.04 at the last check
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/41052867" target="_blank" rel="noreferrer noopener">Disney&#8217;s Streaming Surge, Epic Games Deal Among Key Growth Drivers, Says Analyst</a></li>
</ul>
Image: Shutterstock

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TSLA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/13/24</td>
<td>$230.00</td>
<td>$27.3K</td>
<td>26.5K</td>
<td>167.9K</td>
</tr>
<tr>
<td>AMZN</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$175.00</td>
<td>$26.6K</td>
<td>22.9K</td>
<td>17.5K</td>
</tr>
<tr>
<td>GM</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$45.00</td>
<td>$49.4K</td>
<td>29.4K</td>
<td>3.4K</td>
</tr>
<tr>
<td>PLCE</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$11.00</td>
<td>$37.0K</td>
<td>2.1K</td>
<td>1.0K</td>
</tr>
<tr>
<td>CZR</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/18/26</td>
<td>$43.00</td>
<td>$327.7K</td>
<td>158</td>
<td>801</td>
</tr>
<tr>
<td>KSS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$20.00</td>
<td>$71.5K</td>
<td>13.8K</td>
<td>559</td>
</tr>
<tr>
<td>AEO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$19.00</td>
<td>$34.6K</td>
<td>2.4K</td>
<td>514</td>
</tr>
<tr>
<td>AMRK</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$45.00</td>
<td>$48.6K</td>
<td>117</td>
<td>354</td>
</tr>
<tr>
<td>SBUX</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$90.00</td>
<td>$31.1K</td>
<td>6.3K</td>
<td>299</td>
</tr>
<tr>
<td>LOW</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$250.00</td>
<td>$40.8K</td>
<td>2.6K</td>
<td>228</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding TSLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), we observe a call option sweep with bullish sentiment. It expires in 1 day(s) on September 13, 2024. Parties traded 100 contract(s) at a $230.00 strike. This particular call needed to be split into 21 different trades to become filled. The total cost received by the writing party (or parties) was $27.3K, with a price of $274.0 per contract. There were 26569 open contracts at this strike prior to today, and today 167964 contract(s) were bought and sold. 
• Regarding AMZN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), we observe a call option trade with bullish sentiment. It expires in 36 day(s) on October 18, 2024. Parties traded 19 contract(s) at a $175.00 strike. The total cost received by the writing party (or parties) was $26.6K, with a price of $1400.0 per contract. There were 22969 open contracts at this strike prior to today, and today 17531 contract(s) were bought and sold. 
• For GM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), we notice a put option sweep that happens to be bearish, expiring in 8 day(s) on September 20, 2024. This event was a transfer of 1409 contract(s) at a $45.00 strike. This particular put needed to be split into 55 different trades to become filled. The total cost received by the writing party (or parties) was $49.4K, with a price of $35.0 per contract. There were 29449 open contracts at this strike prior to today, and today 3419 contract(s) were bought and sold. 
• For PLCE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLCE#NASDAQ">PLCE</a>), we notice a call option sweep that happens to be bearish, expiring in 8 day(s) on September 20, 2024. This event was a transfer of 185 contract(s) at a $11.00 strike. This particular call needed to be split into 31 different trades to become filled. The total cost received by the writing party (or parties) was $37.0K, with a price of $200.0 per contract. There were 2131 open contracts at this strike prior to today, and today 1034 contract(s) were bought and sold. 
• Regarding CZR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>), we observe a call option sweep with bullish sentiment. It expires in 827 day(s) on December 18, 2026. Parties traded 373 contract(s) at a $43.00 strike. This particular call needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $327.7K, with a price of $880.0 per contract. There were 158 open contracts at this strike prior to today, and today 801 contract(s) were bought and sold. 
• For KSS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>), we notice a put option sweep that happens to be bearish, expiring in 36 day(s) on October 18, 2024. This event was a transfer of 500 contract(s) at a $20.00 strike. This particular put needed to be split into 26 different trades to become filled. The total cost received by the writing party (or parties) was $71.5K, with a price of $143.0 per contract. There were 13802 open contracts at this strike prior to today, and today 559 contract(s) were bought and sold. 
• For AEO (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>), we notice a call option sweep that happens to be bullish, expiring in 36 day(s) on October 18, 2024. This event was a transfer of 318 contract(s) at a $19.00 strike. This particular call needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $34.6K, with a price of $109.0 per contract. There were 2418 open contracts at this strike prior to today, and today 514 contract(s) were bought and sold. 
• For AMRK (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMRK#NASDAQ">AMRK</a>), we notice a put option sweep that happens to be bearish, expiring in 99 day(s) on December 20, 2024. This event was a transfer of 157 contract(s) at a $45.00 strike. This particular put needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $48.6K, with a price of $310.0 per contract. There were 117 open contracts at this strike prior to today, and today 354 contract(s) were bought and sold. 
• For SBUX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), we notice a put option sweep that happens to be bullish, expiring in 127 day(s) on January 17, 2025. This event was a transfer of 105 contract(s) at a $90.00 strike. This particular put needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $31.1K, with a price of $297.0 per contract. There were 6394 open contracts at this strike prior to today, and today 299 contract(s) were bought and sold. 
• For LOW (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>), we notice a call option sweep that happens to be bullish, expiring in 36 day(s) on October 18, 2024. This event was a transfer of 51 contract(s) at a $250.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $40.8K, with a price of $800.0 per contract. There were 2686 open contracts at this strike prior to today, and today 228 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AMRK

PLCE

SBUX

TSLA

10 Consumer Discretionary Stocks Whale Activity In Today's Session

American Eagle Outfitters, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aeo#NYSE">AEO</a>) remains well-poised to tap the positive trends in the fashion arena, thanks to its digital endeavors and other robust strategies, including the Powering Profitable Growth plan. The company is gaining from immense brand strength and sturdy demand for its products that resonate well with the customers.
American Eagle&#39;s brand strength and gains from progress on its Powering Profitable Growth strategy have been bolstering its performance for a while. Its earnings beat the Zacks Consensus Estimate for the fifth consecutive time in second-quarter fiscal 2024. This was the company&#39;s sixth straight quarter of record revenues. The bottom and top lines also increased year over year. Let&#39;s delve deeper.
<h2>AEO&#39;s Powering Profitable Growth &amp; Other Efforts</h2>
American Eagle is on track with its Powering Profitable Growth plan. The plan looks to deliver annual operating income growth in the mid-to-high teens to more than $570 million by the end of fiscal 2026. This translates to an operating margin of about 10%, implying an expansion of 300 basis points over the next few years.
The plan also targets annual revenue growth in the band of 3-5% through the end of fiscal 2026. This indicates revenues in the range of $5.7-$6 billion. The company remains committed to amplifying brands, optimizing operations and executing financial discipline.
In addition, its Real Power Real Growth value creation plan is focused on driving profitability through real estate and inventory-optimization efforts, omnichannel and customer focus and investments to improve the supply chain. As part of the Real Power Real Growth plan, American Eagle has been pursuing opportunities to grow the Aerie brand through expansion into newer markets, innovation and a growing customer base.
<h2>American Eagle&#39;s Brand Strength Holds Promise</h2>
We note that American Eagle has been witnessing spectacular response for its Aerie brand for quite some time now. Sales rose 9% and comps jumped 4% for Aerie in the fiscal second quarter. Strength in apparel and the offline active sub-brand aided growth. The company is focused on building brand awareness and expanding into new categories. New Aerie and offline stores are doing well, thereby expanding the reach and enlarging the customer base.
The company&#39;s soft dressing categories and the expansion into activewear are key drivers. Soft Apparel was driven by tees, shorts, tanks and pants. Major categories remained mostly positive in the quarter. The company is seeing a positive response from consumers to its innovations and categories like sleepwear, and fleece and leggings. Management sees potential in Soft Apparel and activewear categories going forward.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c6/76397.jpg?v=1806550129" />
Image Source: Zacks Investment Research
In addition, the company&#39;s flagship brand is also doing well. Revenues for the American Eagle (&quot;AE&quot;) brand increased 8% year over year and comps rose 5%. This marked the fourth straight quarter of revenue and profit growth for AE. Operating profit has also been going up each quarter. The top category registered six straight quarters of growth. Skirts, dresses and shorts also remained sturdy. The company has been targeting social casual occasions and is strengthening age demo, both are key growth opportunities.
<h2>Headwinds Faced by American Eagle</h2>
American Eagle has been witnessing increased selling, general and administrative (SG&amp;A) expenses for a while now. SG&amp;A expenses grew 4% year over year in the fiscal second quarter. In addition, the ongoing uncertain macro landscape and consumer spending pattern are headwinds. Apart from this, stiff competition in the industry remains a concern.
<h2>AEO&#39;s Performance &amp; Upbeat View</h2>
Buoyed by gains from growth initiatives and efficient cost-control efforts, American Eagle now expects operating income to be in the high end of the $455-$465 million range for fiscal 2024. This indicates income growth in the band of 21-24% to adjusted operating income of $375 million. The company expects comparable sales to be up around 4%, with total revenues increasing in the band of 2-3%, including the impact of one less selling week.
For the fiscal third quarter, AEO anticipates operating income to be in the range of $120-$125 million. American Eagle expects comparable sales to grow in the band of 3-4%, with total revenues estimated to remain flat to rise slightly due to the impact of the retail calendar. SG&amp;A is likely to leverage, with dollars down slightly, owing to the efficiencies in key focus areas.
Analysts also seem optimistic about AEO stock. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share is currently pegged at $5.4 billion and $1.79, respectively. This indicates growth of 3.3% and 17.8%, respectively, year over year.
Buoyed by such strengths, shares of this apparel and footwear dealer have gained 21.3% compared with the industry&#39;s 22.9% growth in a year. All the aforementioned strengths will continue aiding this Zacks Rank #3 (Hold) company&#39;s performance on the bourses moving forward.
<h2>Key Picks</h2>
We have highlighted three better-ranked stocks, namely Boot Barn, Abercombie and Deckers.
Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy).
The company has a trailing four-quarter earnings surprise of 7.1%, on average.
The Zacks Consensus Estimate for Boot Barn&#39;s current financial-year sales indicates growth of 10.7% from the year-ago figure.
Abercrombie, a leading casual apparel retailer, currently sports a Zacks Rank of 1. ANF delivered an earnings surprise of 16.8% in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie&#39;s current financial-year sales indicates growth of 12.5% from the year-ago figure.
Deckers, a footwear and accessories dealer, currently carries a Zacks Rank #2 (Buy). DECK delivered an average earnings surprise of 47.2% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers&#39; current financial-year sales indicates growth of 11.5% from the year-ago figure.
<a href="https://www.zacks.com/stock/news/2330899/american-eagle-s-brands-growth-efforts-seem-good-apt-to-hold-stock?cid=CS-BENZ-FT-analyst_blog|rank_focused-2330899">To read this article on Zacks.com click here.</a>

American Eagle's Brands & Growth Efforts Seem Good: Apt to Hold Stock

Telsey Advisory Group analyst Dana Telsey maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Market Perform and lowers the price target from $25 to $23.

Telsey Advisory Group Maintains Market Perform on American Eagle Outfitters, Lowers Price Target to $23

Barclays analyst Adrienne Yih maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Overweight and lowers the price target from $32 to $26.

Barclays Maintains Overweight on American Eagle Outfitters, Lowers Price Target to $26

Ratings for American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $26.75, with a high estimate of $34.00 and a low estimate of $23.00. Experiencing a 2.73% decline, the current average is now lower than the previous average price target of $27.50. 
<img src="https://www.benzinga.com/files/images/story/2024/1725030017_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
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.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jay Sole</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$34.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Jonna Kim</td>
<td>TD Cowen</td>
<td>Lowers</td>
<td>Hold</td>
<td>$23.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>$25.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to American Eagle Outfitters. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>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.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of American Eagle Outfitters's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
For valuable insights into American Eagle Outfitters's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/AEO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on American Eagle Outfitters analyst ratings.</a>
<h2>About American Eagle Outfitters</h2>
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.
<h3>American Eagle Outfitters: Delving into Financials</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: American Eagle Outfitters's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2024, the company achieved a revenue growth rate of approximately 5.82%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: American Eagle Outfitters's net margin excels beyond industry benchmarks, reaching 5.92%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): American Eagle Outfitters's ROE stands out, surpassing industry averages. With an impressive ROE of 3.88%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): American Eagle Outfitters's ROA excels beyond industry benchmarks, reaching 1.9%. This signifies efficient management of assets and strong financial health.
Debt Management: American Eagle Outfitters's debt-to-equity ratio is below the industry average at 0.75, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>What Are Analyst Ratings?</h2>
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.

What Analysts Are Saying About American Eagle Outfitters Stock

UBS analyst Jay Sole maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Buy and lowers the price target from $35 to $34.

UBS Maintains Buy on American Eagle Outfitters, Lowers Price Target to $34

TD Cowen analyst Jonna Kim maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Hold and lowers the price target from $25 to $23.

TD Cowen Maintains Hold on American Eagle Outfitters, Lowers Price Target to $23

Wall Street rallied robustly on Thursday, with traders embracing a risk-on approach after government data revealed the U.S. economy grew by 3% in the second quarter, outpacing earlier estimates of 2.8%, driven by strong upward <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40629012/gdp-data-shows-economy-in-good-shape-job-market-key-for-rest-of-2024-economists">revisions in household consumption. </a>
The upbeat market sentiment prevailed even as NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), the year&#8217;s top-performing S&amp;P 500 stock, slipped over 3% following its earnings report, with revenue projections for the current quarter failing to impress the heightened expectations.
Other semiconductor stocks decoupled from Nvidia <a href="https://www.benzinga.com/news/earnings/24/08/40630439/semiconductor-etfs-rally-despite-nvidia-dip-10-chipmakers-defy-the-ai-darlings-drop">and showed strong gains</a>, with the broader iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) up over 2%. 
Small caps rallied 1.4%, positively reacting to the upwardly revised GDP data. The Dow Jones Industrial Average rose 1.1%. achieving fresh record highs to over 41,500 points. 
Commodities gained strength, with natural gas rallying 2%, oil prices climbing 1.6%, gold advancing 0.8%, and silver rising 1.3%.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 2.5%, on track to snap three straight session of losses. 
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,223.27</td>
<td>1.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,614.94</td>
<td>1.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,562.92</td>
<td>1.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,645.35</td>
<td>1.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:45 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082924&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.9% higher to $563.17.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.1% to $416.02.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up 1.2% to $477.23.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.4% to $220.24.</li>
<li>The Industrials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) outperformed, up by 1.5%. The Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down by 0.4%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Chipmaker stocks rallying the most on Thursday despite Nvidia&#8217;s dip were Arm Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) up 5.6%, Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) up 4.7% and ON Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) up 4.3%.</li>
<li>Other stocks moving on earnings are American Eagle Outfitters, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) down 3.3%, Affirm Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) up 33%, Best Buy Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBY#NYSE">BBY</a>) up 15%, Burlington Stores, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BURL#NYSE">BURL</a>) up 0.7%, Campbell Soup Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPB#NASDAQ">CPB</a>) down 1.5%, Cooper Companies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>) up over 11%, CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) up 5%, Dollar General Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) down 30%, Five Below, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVE#NASDAQ">FIVE</a>) down 1%, HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) up 4%, Nutanix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTNX#NASDAQ">NTNX</a>) up 19%, NetApp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>) down 8%, Okta, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OKTA#NASDAQ">OKTA</a>) down 16%, Pure Storage, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSTG#NYSE">PSTG</a>) down 15%, Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) up 0.5% and Victoria&#8217;s Secret &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSCO#NYSE">VSCO</a>) down 1.3%.</li>
<li>Those reporting after the close include Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>), Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>), Gap, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GAP#NYSE">GAP</a>), Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>), Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), MongoDB, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>) and Ulta Beauty Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULTA#NASDAQ">ULTA</a>).</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40628887/nvidia-analysts-say-pullback-is-buying-opportunity-pushing-ai-envelope-too-signific">Nvidia Analysts Say Pullback Is Buying Opportunity: &#8216;Pushing AI Envelope Too Significant To Slow Down&#8217;</a></li>
</ul>
Photo: Shutterstock

US Stocks Rally, Dow Jones Achieves Record Highs As GDP Outperforms, Nvidia Falls: What's Driving Markets Thursday?

Telsey Advisory Group analyst Dana Telsey maintains American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) with a Market Perform and maintains $25 price target.

Telsey Advisory Group Maintains Market Perform on American Eagle Outfitters, Maintains $25 Price Target

Market Summary

General

Benzinga Market Summary: GDP Growth Beats Expectations, NVIDIA Declines Despite Q2 Earnings Beat, Multiple Retail Stocks Fall On Earnings

American Eagle Outfitters, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) shares are&nbsp;diving premarket Thursday after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40623350/aeo-inc-reports-record-second-quarter-revenue-and-meaningful-operating-margin-expansion-updates-fu" rel="noreferrer noopener">reported mixed second-quarter results</a>.
The company reported adjusted EPS of 39 cents, beating <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">the analyst consensus of $0.38</a>. 
Revenues rose 8% year-over-year (Y/Y) to $1.29 billion, missing the street view of $1.31 billion. American Eagle Comp sales rose  5%, while Aerie Comp sales increased 9%. 
Store revenue rose&nbsp;7%, and digital revenue increased&nbsp;12% in the quarter.
Gross profit rose 10% Y/Y to $499 million, with a gross margin rate of 38.6%, up 90 basis points. This growth was driven by higher merchandise margins due to favorable product costs and expense leverage, particularly in rent and digital delivery costs.
Total ending inventory grew by 4% Y/Y to $664 million.
Capital expenditures totaled $61 million in the second quarter and $97 million year-to-date.
Outlook: American Eagle Outfitters projects third-quarter operating income of $120 million to $125 million. Comparable sales growth ranged between 3%-4%, with <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">total revenue flat to slightly up</a>.
American Eagle Outfitters now sees fiscal 2024 operating income of $445 million and $465 million.
Also, the company revised fiscal 2024 comparable sales growth guidance of around 4%, with total revenue rising 2% to 3% <a href="https://www.benzinga.com/pressreleases/24/05/b39073411/aeo-inc-reports-first-quarter-fiscal-2024-results-reflecting-strong-execution-on-powering-profitab" target="_blank" rel="noreferrer noopener">(vs. up 2% to 4% prior outlook)</a>.
For FY24, management continues to expect capital expenditures to be around&nbsp;$200 million&nbsp;to&nbsp;$250 million.
American Eagle CEO Jay Schottenstein said, &#8220;Our Powering Profitable Growth strategy is off to a great start, locking in a strong first half and setting us on track to achieve the high end of our prior operating profit outlook for 2024.&#8221;
&#8220;The second quarter marked our sixth consecutive quarter of record revenue and we successfully leveraged our cost base – advancing a number of strategic priorities to fuel growth across brands and channels and drive operating efficiencies,&#8221;
Investors can gain exposure to the stock via&nbsp;Avantis U.S. Small Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVUV#NYSE">AVUV</a>) and&nbsp;Invesco S&amp;P SmallCap Consumer Discretionary ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCD#NASDAQ">PSCD</a>).
Price Action: AEO shares are down 6.68% at $20.25 premarket at last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40621553/wall-street-on-track-for-relief-rally-with-nvidia-earnings-in-rearview-mirror-strategist-says-near-" target="_blank" rel="noreferrer noopener">Wall Street On Track For Relief Rally With Nvidia Earnings In Rearview Mirror: Strategist Says Near-Term Market Trajectory May Not Hinge On Presidential Election But This</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Guidance

Movers

AVUV

PSCD

American Eagle Posts Mixed Q2: 'Our Strategy Is Off To A Great Start,' CEO Says

WIIM

American Eagle Outfitters shares are trading lower following mixed Q2 financial results.

American Eagle Outfitters Sees Q3 Operating Income Of $120M-$125M; Company Expects Comparable Sales To Increase 3%-4%, With Total Revenue Flat To Up Slightly

American Eagle Outfitters Updates FY24 Operating Income Outlook To $455M-$465M, High End Of Prior Guidance; Projects Comparable Sales To Rise 4%, With Total Revenue Up 2%-3%

American Eagle Outfitters (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>) reported quarterly earnings of $0.39 per share which beat the analyst consensus estimate of $0.38 by 2.63 percent. This is a 56 percent increase over earnings of $0.25 per share from the same period last year. The company reported quarterly sales of $1.29 billion which missed the analyst consensus estimate of $1.31 billion by 1.45 percent. This is a 7.50 percent increase over sales of $1.20 billion the same period last year.

Earnings Beats

Earnings Misses

American Eagle Outfitters Q2 EPS $0.39 Beats $0.38 Estimate, Sales $1.29B Miss $1.31B Estimate

After dilly-dallying in recent sessions amid anticipation ahead of Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) earnings, market mood is settling in. The index futures were higher in early trading. Nvidia shares have clawed part of their <a href="https://www.benzinga.com/news/earnings/24/08/40619714/nvidia-slumps-nearly-5-in-premarket-dragging-down-super-micro-micron-and-other-peers-whats-going-on">losses seen early in the premarket session</a> and could recover when sell-side analysis starts coming in. Some strong tech earnings could provide the offsetting impact.
The preliminary GDP data due ahead of the market will be parsed by traders for cues on growth and inflation. A speech by a Federal Reserve official is also on traders&#8217; radar. More importantly, Friday&#8217;s consumer price expenditure index data called the Fed&#8217;s favorite inflation gauge, could keep the market on tenterhook. The Labor Day holiday on Monday could dampen trading volume, and this could impart volatility, although traders do not attach much significance to low-volume moves.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.28%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.23%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.52%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.53%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Thursday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.20% to $559.41, and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) gained 0.25% to $472.53, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session 
Caution ahead of Nvidia&#8217;s earnings and a sharp pullback in the shares of Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) weighed down on the tech space on Wednesday, which in turn dragged the major averages on Wednesday lower. After a lackluster start, stocks moved sideways in early trading, and subsequently, they moved lower before recouping some of the losses in late afternoon trading.
The tech-heavy Nasdaq Composite settled at its lowest in about two weeks and the Dow Jones Industrial Average retreated from its all-time closing high.
All but two S&amp;P 500 sector classes retreated on Wednesday, and IT, communication services, consumer discretionary and energy stocks bore the brunt of the selling pressure. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-1.12%</td>
<td>17,556.03</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-0.60%</td>
<td>5,592.18</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.39%</td>
<td>41,091.42</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.65%</td>
<td>2,188.64</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
As the presidential election campaign heads into the final sprint, Michael Zezas, Managing Director, Head of U.S. Public Policy Research &amp; Municipal Credit Strategy at Morgan Stanley, said before the election, not the ups and downs of the campaign but the business cycle will probably affect the markets. &#8220;We don't think investors' near-term strategies will focus on the election,&#8221; he said. 
Following the election, Zezas said he expects the election impact to be more pronounced in specific sectors. A Democratic win may be negative for energy and telecom stocks but positive for clean-energy stocks, he said.
&#8220;The outcome of the election could affect the U.S. Treasury yield curve, which plots bond yields against maturity dates, as well as the U.S. dollar,&#8221; he said. Trump&#8217;s insinuation of higher tariffs will likely weigh on economic growth and lead to a steeper yield curve but it would be positive for the dollar, he added.
LPL Financial Chief Economist Jeffrey Roach said should the economy worsen, the equity market could see volatility. The August payroll report, due on Sept. 6, or the upcoming months&#8217; reports could show some underlying weakness in the broader hiring trends. He also noted caution among consumers who may not splurge on big-ticket items as the economy progresses into late-cycle dynamics.
LPL said it maintained its investment perspective of being modestly overweight on fixed income, funded from cash. This, the firm said, can help buffer against equity market volatility should economic conditions worsen, while also providing attractive income.
Upcoming Economic Data
<ul>
<li>The Labor Department will release the weekly jobless claims report at 8:30 a.m. EDT. The number of individuals claiming unemployment benefits may come in at 230,000 for the week ended Aug. 24, down slightly from 232,000 in the previous week.</li>
<li>The Bureau of Economic Analysis is due to release the preliminary (second read) GDP data for the second quarter at 8:30 a.m. EDT. Economists, on average, expect the annualized pace of quarter-over-quarter growth to be left unrevised at 2.8% compared to the first quarter&#8217;s 1.4% growth. Traders may also focus on the personal consumption expenditure index and the GDP price deflator, which are considered as inflation measures.</li>
<li>The National Association of Realtors is scheduled to release its pending home sales index for July at 10 a.m. EDT, with the consensus calling for a 0.2% month-over-month increase compared to June&#8217;s 4.8% growth.</li>
<li>The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT and seven-year notes at 1 p.m. EDT.</li>
<li>Atlanta Fed President Raphael Bostic will make a public appearance at 3:30 p.m. EDT.</li>
</ul>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Stocks In Focus:
<ul>
<li>Nvidia fell 1.77%<a href="https://www.benzinga.com/premarket"> in premarket trading </a>as traders pushed down the stock following the company&#8217;s quarterly results. Other chipmakers also moved in sympathy.</li>
<li>Other stocks moving on earnings are Affirm Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) (up over 22%), &nbsp;Cooper Companies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>) (up over 4.70%), CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) (down over 2%), Five Below, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVE#NASDAQ">FIVE</a>), HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) (up over 7%), Nutanix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTNX#NASDAQ">NTNX</a>) (up over 17%), NetApp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>) (down over 2.7%), Okta, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OKTA#NASDAQ">OKTA</a>) (down over 10.50%), Pure Storage, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSTG#NYSE">PSTG</a>) (down over 13%), Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) (up over 5%) and Victoria&#8217;s Secret &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSCO#NYSE">VSCO</a>) (up over 5%).</li>
<li>American Eagle Outfitters, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEO#NYSE">AEO</a>), Best Buy Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBY#NYSE">BBY</a>), Burlington Stores, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BURL#NYSE">BURL</a>), Campbell Soup Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPB#NASDAQ">CPB</a>), Dollar General Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) and Ollie&#8217;s Bargain Outlet Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OLLI#NASDAQ">OLLI</a>) are among the <a href="https://www.benzinga.com/calendars/earnings">key companies reporting their earnings ahead of the market open.</a></li>
<li>Those reporting after the close include Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>), Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>), Gap, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPS#NYSE">GPS</a>), Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>), Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), MongoDB, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>) and Ulta Beauty, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULTA#NASDAQ">ULTA</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil and gold futures were rebounding after a two-session slide and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded below the $60K level. The yield on the 10-year Treasury note fell 1.4 basis points to 3.827%.
Most Asian markets retreated on Thursday. following Wall Street&#8217;s weakness overnight and the negative reaction to Nvidia&#8217;s earnings, while European stocks traded higher early in the session.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/24/08/40611223/mortgage-rates-hit-17-month-lows-but-homebuyers-are-staying-patient-as-applications-stall">Mortgage Rates Hit 17-Month Lows, But &#8216;Homebuyers Are Staying Patient&#8217; As Applications Stall</a></li>
</ul>
Image Via Shutterstock

Futures

Previews

Federal Reserve

Pre-Market Outlook

SMCI

Wall Street On Track For Relief Rally With Nvidia Earnings In Rearview Mirror: Strategist Says Near-Term Market Trajectory May Not Hinge On Presidential Election But This

Stratasys (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ssys#NASDAQ">SSYS</a>) is slated to release second-quarter 2024 results on Aug. 29.
The Zacks Consensus Estimate for Stratasys&#39; second-quarter revenues is pegged at $148.08 million, indicating a year-over-year decrease of 7.31%. The consensus mark for the bottom line is pegged at a loss of 4 cents per share. SSYS posted non-GAAP earnings of 4 cents per share in the year-ago quarter.
Its earnings beat the Zacks Consensus Estimate twice in the trailing four quarters, matched once and missed once, the average surprise being 58.33%.
Let&#39;s see how things have shaped up before the upcoming announcement.
<div class="chart_embed">
<h2>Stratasys, Ltd. Price and EPS Surprise</h2>
<img alt="Stratasys, Ltd. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/d5/1724762436.png" style="height:310px; width:620px" title="" />
Stratasys, Ltd. price-eps-surprise | Stratasys, Ltd. Quote
</div>
<h2>Factors to Consider</h2>
The year-over-year expected decline in top and bottom lines is due to divestitures of certain businesses and unfavorable foreign currency exchange rates. Nonetheless, Stratasys&#39; second-quarter performance is likely to have benefited from steady demand for its products and solutions.
With many engineers, designers, architects and entrepreneurs resorting to 3D solutions for their primary designing and product modeling, the 3D printing market is becoming a favorable long-term investment opportunity. This trend is likely to have spurred the demand for Stratasys&#39; 3D products and solutions in the second quarter. In the quarter to be reported, Stratasys announced its new SAF HighDef Printing capabilities and the launch of the H350 printer, Version 1.5 (V.1.5), to expand SAF adoption with additional applications and use cases for a growing set of manufacturing end markets.
SSYS also launched the J5 Digital Anatomy 3D printer, which is designed to meet the rising need for affordable and high-fidelity anatomical models. An improvement in product quality and performance, along with multiple product launches, is expected to have boosted the firm&#39;s performance.
The company announced updates to several Industrial and Healthcare Business Unit products and Stratasys Direct. These include a new open platform for the F900 3D printer, more on-demand 3D printing capabilities and a new high-performance material for its Fused Deposition Modeling line. These product launches with enhanced capabilities are likely to have helped the company gain new customers in the to-be-reported quarter.
However, the weakening global economy amid ongoing macroeconomic issues has led enterprises to postpone their large IT spending plans. This might have hurt Stratasys&#39; top line in the second quarter. Additionally, inflation and increased component costs are likely to have weighed on Stratasys&#39; profitability in the quarter.
<h2>What Our Model Says</h2>
Our proven model does not conclusively predict an earnings beat for SSYS this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that&#39;s not the case here.
Though Stratasys currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%.
<h2>Stocks With the Favorable Combination</h2>
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Abercrombie &amp; Fitch (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>) has an Earnings ESP of +3.50% and carries a Zacks Rank #2 at present.
Abercrombie &amp; Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company&#39;s earnings is pegged at $2.13 per share, indicating a significant improvement of 93.6% from the prior-year quarter&#39;s figure of $1.10. Shares of ANF have returned 92.5% in the year-to-date period.
Affirm (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/afrm#NASDAQ">AFRM</a>) has an Earnings ESP of +19.64% and carries a Zacks Rank #3 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for Affirm&#39;s loss is pegged at 45 cents per share, narrower than the prior-year quarter&#39;s loss of 69 cents. Shares of Affirm have plunged 36% in the year-to-date period.
American Eagle Outfitters (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aeo#NYSE">AEO</a>) has an Earnings ESP of +1.97% and carries a Zacks Rank #3 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO&#39;s earnings is pegged at 38 cents per share, which indicates an improvement of 52% from the year-ago quarter&#39;s reported figure. Shares of American Eagle Outfitters have gained 4.8% in the year-to-date period.
<a href="https://www.zacks.com/stock/news/2327846/stratasys-gears-up-to-report-q2-earnings-key-factors-to-note?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2327846">To read this article on Zacks.com click here.</a>

SSYS

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ATGE

BIRK

DASH

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EXPE

FTDR

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LOCO

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UPBD

URBN

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American Eagle Outfitters

American Eagle Outfitters (AEO) Forecast

American Eagle Outfitters (NYSE:AEO) Stock, Quote.Headers.trade-ideas