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Should Value Investors Buy American Eagle Outfitters (AEO) Stock?
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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
American Eagle Outfitters (AEO - Free Report) is a stock many investors are watching right now. AEO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.16, which compares to its industry's average of 14.80. Over the last 12 months, AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 10.51.
We should also highlight that AEO has a P/B ratio of 1.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.03. Over the past 12 months, AEO's P/B has been as high as 2.30 and as low as 1.20, with a median of 1.66.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Urban Outfitters currently holds a Forward P/E ratio of 10.80, and its PEG ratio is 0.60. In comparison, its industry sports average P/E and PEG ratios of 14.80 and 0.90.
URBN's Forward P/E has been as high as 16.59 and as low as 5.92, with a median of 10.49. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.33, with a median of 0.58.
Urban Outfitters also has a P/B ratio of 1.39 compared to its industry's price-to-book ratio of 3.03. Over the past year, its P/B ratio has been as high as 1.57, as low as 1.01, with a median of 1.28.
These are only a few of the key metrics included in American Eagle Outfitters and Urban Outfitters strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AEO and URBN look like an impressive value stock at the moment.
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Should Value Investors Buy American Eagle Outfitters (AEO) Stock?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
American Eagle Outfitters (AEO - Free Report) is a stock many investors are watching right now. AEO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.16, which compares to its industry's average of 14.80. Over the last 12 months, AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 10.51.
We should also highlight that AEO has a P/B ratio of 1.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.03. Over the past 12 months, AEO's P/B has been as high as 2.30 and as low as 1.20, with a median of 1.66.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Urban Outfitters currently holds a Forward P/E ratio of 10.80, and its PEG ratio is 0.60. In comparison, its industry sports average P/E and PEG ratios of 14.80 and 0.90.
URBN's Forward P/E has been as high as 16.59 and as low as 5.92, with a median of 10.49. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.33, with a median of 0.58.
Urban Outfitters also has a P/B ratio of 1.39 compared to its industry's price-to-book ratio of 3.03. Over the past year, its P/B ratio has been as high as 1.57, as low as 1.01, with a median of 1.28.
These are only a few of the key metrics included in American Eagle Outfitters and Urban Outfitters strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AEO and URBN look like an impressive value stock at the moment.