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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.
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.
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.
American Eagle Outfitters (AEO - Free Report) is a stock many investors are watching right now. AEO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.46, while its industry has an average P/E of 14.12. Over the last 12 months, AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 11.27.
We should also highlight that AEO has a P/B ratio of 1.51. 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. This stock's P/B looks attractive against its industry's average P/B of 2.73. Within the past 52 weeks, AEO's P/B has been as high as 2.18 and as low as 1.20, with a median of 1.60.
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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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.
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.
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.
American Eagle Outfitters (AEO - Free Report) is a stock many investors are watching right now. AEO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.46, while its industry has an average P/E of 14.12. Over the last 12 months, AEO's Forward P/E has been as high as 19.09 and as low as 5.63, with a median of 11.27.
We should also highlight that AEO has a P/B ratio of 1.51. 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. This stock's P/B looks attractive against its industry's average P/B of 2.73. Within the past 52 weeks, AEO's P/B has been as high as 2.18 and as low as 1.20, with a median of 1.60.
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.