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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.41. This compares to its industry's average Forward P/E of 16.01. Over the past 52 weeks, AEO's Forward P/E has been as high as 19.09 and as low as 9.32, with a median of 13.01.
We also note that AEO holds a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEO's industry has an average PEG of 1.01 right now. AEO's PEG has been as high as 3.12 and as low as 0.58, with a median of 0.93, all within the past year.
We should also highlight that AEO has a P/B ratio of 2.30. 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. AEO's current P/B looks attractive when compared to its industry's average P/B of 4.09. Within the past 52 weeks, AEO's P/B has been as high as 2.44 and as low as 1.24, with a median of 1.82.
Finally, investors should note that AEO has a P/CF ratio of 8.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.79. Within the past 12 months, AEO's P/CF has been as high as 9.94 and as low as 6.01, with a median of 7.80.
Urban Outfitters (URBN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. URBN is a # 2 (Buy) stock with a Value grade of A.
Shares of Urban Outfitters are currently trading at a forward earnings multiple of 12.13 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 16.01 and 1.01, respectively.
URBN's Forward P/E has been as high as 16.59 and as low as 9.40, with a median of 10.87. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.40, with a median of 0.58.
Urban Outfitters also has a P/B ratio of 1.79 compared to its industry's price-to-book ratio of 4.09. Over the past year, its P/B ratio has been as high as 1.83, as low as 1.32, with a median of 1.57.
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.41. This compares to its industry's average Forward P/E of 16.01. Over the past 52 weeks, AEO's Forward P/E has been as high as 19.09 and as low as 9.32, with a median of 13.01.
We also note that AEO holds a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEO's industry has an average PEG of 1.01 right now. AEO's PEG has been as high as 3.12 and as low as 0.58, with a median of 0.93, all within the past year.
We should also highlight that AEO has a P/B ratio of 2.30. 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. AEO's current P/B looks attractive when compared to its industry's average P/B of 4.09. Within the past 52 weeks, AEO's P/B has been as high as 2.44 and as low as 1.24, with a median of 1.82.
Finally, investors should note that AEO has a P/CF ratio of 8.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.79. Within the past 12 months, AEO's P/CF has been as high as 9.94 and as low as 6.01, with a median of 7.80.
Urban Outfitters (URBN - Free Report) may be another strong Retail - Apparel and Shoes stock to add to your shortlist. URBN is a # 2 (Buy) stock with a Value grade of A.
Shares of Urban Outfitters are currently trading at a forward earnings multiple of 12.13 and a PEG ratio of 0.67 compared to its industry's P/E and PEG ratios of 16.01 and 1.01, respectively.
URBN's Forward P/E has been as high as 16.59 and as low as 9.40, with a median of 10.87. During the same time period, its PEG ratio has been as high as 0.92, as low as 0.40, with a median of 0.58.
Urban Outfitters also has a P/B ratio of 1.79 compared to its industry's price-to-book ratio of 4.09. Over the past year, its P/B ratio has been as high as 1.83, as low as 1.32, with a median of 1.57.
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.