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This Week's Top Growth & Income Stocks

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American Eagle (AEO - Free Report)

Being a mall based retailer is not easy days as despite savings from low gas prices, consumers have been reluctant to spend. And when they shop, they prefer to shop online. Then, being a teen focused retailer makes things even more difficult because teen fashion trends change continuously and there is increasing competition from off price fashion chains.

Despite these challenges, this teen focused retailer has been able to deliver solid performance by improving merchandise and adapting to the rapidly changing tastes of their fickle teen clients. They have also improved operational performance by closing stores and controlling inventory levels. The company operates more than 1,000 stores worldwide with limited presence in the UK.

The company had reported strong results for Q1, beating on both top and bottom lines. In addition to solid growth potential, company has a dividend yield exceeding 3%. They have also been returning capital via buybacks.

AEO is a Zacks Rank #2 (Buy) stock.

AT&T (T - Free Report)

AT&T is a global telecom giant with very little exposure to the UK. Telecom stocks are very popular this year due to their juicy dividend yields and defensive nature.

AT&T is a dividend aristocrat with more than 30 years of consistent dividend growth. Their current dividend yield is 4.4% and they distribute about 70% of their free cash flow as dividends.

Telecom stocks are generally considered boring stocks with low growth prospects in a highly regulated industry but AT&T actually continues to grow nicely thanks mainly due to innovation as also acquisitions. Last year they had acquired DIRECTV and now have the highest position in the U.S. pay-TV market.

The company had reported strong results for Q1, beating on both top and bottom lines and has seen upward revisions in earnings estimates by analysts after results.

AT&T is also a Zacks Rank #2 (Buy) stock.


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