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Is American Eagle Outfitters (AEO) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 15.05. This compares to its industry's average Forward P/E of 17.71. Over the past year, AEO's Forward P/E has been as high as 18.22 and as low as 6.05, with a median of 9.56.
We also note that AEO holds a PEG ratio of 0.84. 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 1.33. Over the past 52 weeks, AEO's PEG has been as high as 1.05 and as low as 0.65, with a median of 0.89.
Finally, our model also underscores that AEO has a P/CF ratio of 7.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AEO's P/CF compares to its industry's average P/CF of 16.92. Over the past 52 weeks, AEO's P/CF has been as high as 9.27 and as low as 3.36, with a median of 5.12.
These are only a few of the key metrics included in American Eagle Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEO looks like an impressive value stock at the moment.
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Is American Eagle Outfitters (AEO) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 15.05. This compares to its industry's average Forward P/E of 17.71. Over the past year, AEO's Forward P/E has been as high as 18.22 and as low as 6.05, with a median of 9.56.
We also note that AEO holds a PEG ratio of 0.84. 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 1.33. Over the past 52 weeks, AEO's PEG has been as high as 1.05 and as low as 0.65, with a median of 0.89.
Finally, our model also underscores that AEO has a P/CF ratio of 7.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AEO's P/CF compares to its industry's average P/CF of 16.92. Over the past 52 weeks, AEO's P/CF has been as high as 9.27 and as low as 3.36, with a median of 5.12.
These are only a few of the key metrics included in American Eagle Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEO looks like an impressive value stock at the moment.