American Eagle (AEO) Appears Promising, Stock on a Roll
American Eagle Outfitters, Inc.AEO definitely deserves a look as this Zacks Rank #2 (Buy) company has seen its stock price surge 20.8% on a year-to-date basis. This investors' favorite has been riding on the back of multiple growth initiatives and a spectacular earnings history. Notably, the company recently reported outstanding results for second-quarter fiscal 2016, which continued its positive streak, further highlighting its inherent strength.
Buoyed by constant efforts to enhance brands via innovations, make technological advancements and its commitment toward enriching consumer experience, American Eagle's second-quarter top- and bottom-line results improved year over year and also exceeded the Zacks Consensus Estimate. In fact, this marked the company's seventh consecutive earnings beat, underscoring its strong surprise history.
Following an impressive second quarter, management provided a favorable outlook for the third quarter of fiscal 2016, as it entered the fall season with solid expectations with regard to market opportunities as well as the company's robust execution. All these factors underscore management's confidence in its future potential.
Coming to fundamentals, American Eagle boasts a strong portfolio of well-established brands, each focused on the unique characteristics and rapidly changing preferences of target customers. The company plans to concentrate on solidifying its product assortments by adding more compelling brands, managing inventory levels diligently and improving eCommerce business.
Also, the company has been strengthening its global presence for some time now after witnessing strong profitability at its overseas licensed stores, with little capital requirements. Apart from this, American Eagle is striving to develop its omni-channel platform to reach customers in every possible way. Hence, the company has been improving its website as well as mobile app.
We believe these plans for international expansion, together with its omni-channel growth, provide American Eagle with significant opportunities to expand its business and cater to the incredible global demand for its products.
AMER EAGLE OUTF Price and Consensus
All said, it's time you invest in American Eagle and take advantage of its solid growth story and bull run, before it is too late.
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