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AEO American Eagle Outfitters, Inc. - Fundamental Analysis

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AEO Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Cyclical Apparel Retail
Current Price Live
$24.14
Analyst Target
$25.78
+6.8% Upside
52W High
$28.46
52W Low
$9.27

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Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed financial profile: the Piotroski F-Score of 4/9 indicates borderline stable financial health, while the absence of an Altman Z-Score prevents a definitive safety assessment. The stock trades above the Graham Number of $15.26 at $24.14, suggesting possible overvaluation for defensive investors, though growth-based intrinsic value of $31.86 supports current levels. Solid earnings growth (29.3% YoY) and improving margins are offset by weak technicals (10/100) and significant insider selling. Analysts concur with a 'hold' rating and a modestly higher target price of $25.78.

Key Strengths

Strong year-over-year earnings growth of 29.3% indicates effective profitability recovery
Operating margin of 8.26% and gross margin of 36.95% are healthy for the apparel retail sector
ROE of 12.36% exceeds sector average of 5.99%, signaling efficient equity use
Dividend yield of 1.99% is attractive relative to sector peers and supports income investors
Revenue growth of 5.7% aligns with sector average, showing stable top-line performance

Key Risks

Piotroski F-Score of 4/9 suggests weak financial stability, particularly concerning asset efficiency and leverage
Quick ratio of 0.42 indicates potential liquidity risk despite a current ratio of 1.63
Debt/Equity of 1.21 is above peer average (1.58 sector avg), increasing financial risk
Insider selling of $39.87M in 6 months signals lack of confidence from executives
Technical trend score of 10/100 reflects strong bearish momentum despite recent gains
AI Fair Value Estimate
Based on comprehensive analysis
$28.5
+18.1% above current price

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