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Is American Eagle Outfitters (AEO) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.46 right now. For comparison, its industry sports an average P/E of 16.53. AEO's Forward P/E has been as high as 16.30 and as low as 9.32, with a median of 13.01, all within the past year.
Investors will also notice that AEO has 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 PEG compares to its industry's average PEG of 1.04. AEO's PEG has been as high as 3.12 and as low as 0.58, with a median of 0.91, all within the past year.
Another valuation metric that we should highlight is AEO's P/B ratio of 2.49. 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 4.27. AEO's P/B has been as high as 2.56 and as low as 1.24, with a median of 1.82, over the past year.
Finally, investors should note that AEO has a P/CF ratio of 9.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AEO's P/CF compares to its industry's average P/CF of 14.37. Within the past 12 months, AEO's P/CF has been as high as 9.81 and as low as 6.01, with a median of 7.80.
These are just a handful of the figures considered in American Eagle Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AEO is an impressive value stock right now.
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Is American Eagle Outfitters (AEO) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.46 right now. For comparison, its industry sports an average P/E of 16.53. AEO's Forward P/E has been as high as 16.30 and as low as 9.32, with a median of 13.01, all within the past year.
Investors will also notice that AEO has 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 PEG compares to its industry's average PEG of 1.04. AEO's PEG has been as high as 3.12 and as low as 0.58, with a median of 0.91, all within the past year.
Another valuation metric that we should highlight is AEO's P/B ratio of 2.49. 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 4.27. AEO's P/B has been as high as 2.56 and as low as 1.24, with a median of 1.82, over the past year.
Finally, investors should note that AEO has a P/CF ratio of 9.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AEO's P/CF compares to its industry's average P/CF of 14.37. Within the past 12 months, AEO's P/CF has been as high as 9.81 and as low as 6.01, with a median of 7.80.
These are just a handful of the figures considered in American Eagle Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AEO is an impressive value stock right now.