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Are Investors Undervaluing American Eagle Outfitters (AEO) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Eagle Outfitters (AEO - Free Report) . AEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.68 right now. For comparison, its industry sports an average P/E of 15.69. AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 9.59, all within the past year.
Investors should also recognize that AEO has a P/B ratio of 1.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AEO's current P/B looks attractive when compared to its industry's average P/B of 3.17. Over the past 12 months, AEO's P/B has been as high as 2.71 and as low as 1.20, with a median of 1.67.
Investors could also keep in mind Urban Outfitters (URBN - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Urban Outfitters are currently trading at a forward earnings multiple of 12.09 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 15.69 and 1.01, respectively.
URBN's price-to-earnings ratio has been as high as 16.59 and as low as 5.92, with a median of 9.62, while its PEG ratio has been as high as 0.92 and as low as 0.33, with a median of 0.53, all within the past year.
Additionally, Urban Outfitters has a P/B ratio of 1.48 while its industry's price-to-book ratio sits at 3.17. For URBN, this valuation metric has been as high as 1.59, as low as 1.01, with a median of 1.28 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Eagle Outfitters and Urban Outfitters are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEO and URBN feels like a great value stock at the moment.
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Are Investors Undervaluing American Eagle Outfitters (AEO) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Eagle Outfitters (AEO - Free Report) . AEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.68 right now. For comparison, its industry sports an average P/E of 15.69. AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 9.59, all within the past year.
Investors should also recognize that AEO has a P/B ratio of 1.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AEO's current P/B looks attractive when compared to its industry's average P/B of 3.17. Over the past 12 months, AEO's P/B has been as high as 2.71 and as low as 1.20, with a median of 1.67.
Investors could also keep in mind Urban Outfitters (URBN - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Urban Outfitters are currently trading at a forward earnings multiple of 12.09 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 15.69 and 1.01, respectively.
URBN's price-to-earnings ratio has been as high as 16.59 and as low as 5.92, with a median of 9.62, while its PEG ratio has been as high as 0.92 and as low as 0.33, with a median of 0.53, all within the past year.
Additionally, Urban Outfitters has a P/B ratio of 1.48 while its industry's price-to-book ratio sits at 3.17. For URBN, this valuation metric has been as high as 1.59, as low as 1.01, with a median of 1.28 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Eagle Outfitters and Urban Outfitters are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEO and URBN feels like a great value stock at the moment.