American Eagle Outfitters (AEO, $16.27) beats Q2 earnings estimates, but lags in same-store sales growth
American Eagle Outfitters raked in stronger-than-expected second quarter earnings. However, the clothing & accessories retailer’s comparable sales growth came in lower than anticipated.
The company’s adjusted earnings for the three months ending on August 3 came in at 39 cents, up from the year-ago quarter’s 34 cents and higher than the Street estimate of 32 cents.
Group revenues increased +8% to $1.04 billion, slightly ahead of analysts’ expectation of $1 billion.
While American Eagle’s same-store sales climbed +2% from last year, the growth rate fell short of Wall Street forecasts of just over 3%. CEO Jay Schottenstein cited under-performance in certain seasonal categories and a delayed start to back-to-school shopping as challenges in the quarter. But he also emphasized on the company’s 18th consecutive quarter of positive consolidated comparable sales growth.
The company's forecast for its third quarter 2019 earnings per share is between 47 cents and 49 cents, which is a lower range compared to Refinitiv forecast of 52 cents per share.
AEO in upward trend: 10-day moving average crossed above 50-day moving average on June 15, 2026
The 10-day moving average for AEO crossed bullishly above the 50-day moving average on June 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 11, 2026. You may want to consider a long position or call options on AEO as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AEO just turned positive on May 21, 2026. Looking at past instances where AEO's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
AEO moved above its 50-day moving average on June 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AEO advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
AEO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for AEO moved out of overbought territory on June 15, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AEO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AEO entered a downward trend on May 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.787) is normal, around the industry mean (3.558). P/E Ratio (11.031) is within average values for comparable stocks, (17.706). AEO's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.914). Dividend Yield (0.029) settles around the average of (0.032) among similar stocks. P/S Ratio (0.541) is also within normal values, averaging (0.757).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AEO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AEO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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General Information
an operator of specialty retail stores
Industry ApparelFootwearRetail
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