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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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.05, which compares to its industry's average of 17.01. Over the last 12 months, AEO's Forward P/E has been as high as 18.22 and as low as 6.05, with a median of 9.56.
Investors will also notice that AEO has a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AEO's PEG compares to its industry's average PEG of 1.26. 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, investors will want to recognize that AEO has a P/CF ratio of 7.59. 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 16.33. Within the past 12 months, AEO's P/CF has been as high as 9.27 and as low as 3.36, with a median of 5.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Eagle Outfitters is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEO 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.05, which compares to its industry's average of 17.01. Over the last 12 months, AEO's Forward P/E has been as high as 18.22 and as low as 6.05, with a median of 9.56.
Investors will also notice that AEO has a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AEO's PEG compares to its industry's average PEG of 1.26. 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, investors will want to recognize that AEO has a P/CF ratio of 7.59. 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 16.33. Within the past 12 months, AEO's P/CF has been as high as 9.27 and as low as 3.36, with a median of 5.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Eagle Outfitters is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AEO feels like a great value stock at the moment.