Here's Why Investors Should Hold On To American Eagle Stock
Zacks Investment Research | Apr 01, 2019 10:50PM ET
American Eagle Outfitters, Inc. (NYSE:AEO) stock emerges as a strong contender, thanks to its solid comparable store sales (comps) and positive earnings surprise trend. In fourth-quarter fiscal 2018, the company has put up a stellar show by registering 16th straight quarter of positive comps. It also delivered fourth straight earnings beat in the quarter. Also, the company’s top-line surprise history reflects a decent picture, with a beat recorded in three of the last five quarters.
However, management issued muted earnings view for first-quarter fiscal 2019. Earnings are envisioned at 19-21 cents, excluding potential asset impairment as well as restructuring costs. This guidance is lower than adjusted earnings of 23 cents in the year-ago quarter. Consequently, the Zacks Consensus Estimate for the fiscal first quarter has moved 16% south to 21 cents over the past 30 days.
Nevertheless, shares of this Pittsburgh, PA-based company have gained 12% in a year, courtesy of robust omni-channel efforts and brand strength. Also, this Zacks Rank #3 (Hold) stock has outperformed the Original post
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