American Eagle (AEO): Great To Hold Despite Industry Woes
Zacks Investment Research | Jun 24, 2016 08:47AM ET
American Eagle Outfitters Inc. (NYSE:AEO) has been riding on its strategic initiatives, solid earnings surprise history, strength in the Aerie brand and strong margins. All these have come against a backdrop of intense competition and fall in mall traffic due to rise of e-commerce and weak margins, which is impacting the results of the other players in the apparel industry.
American Eagle’s stock price has shown considerable resilience in this environment and is down only 0.9% year to date, while it lost nearly 12.3% over the past one-year period. Not to forget, the stock still looks promising compared to its peers – Gap Inc. (NYSE:GPS) , Abercrombie & Fitch CO. (NYSE:ANF) , Ralph Lauren Corp. (NYSE:RL) and Nordstrom Inc. (NYSE:JWN) , which have respectively lost about 15%, 28.4%, 12.8% and 23.2% year to date.
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