The stock of American Eagle Outfitters, Inc. (NYSE:AEO) is now priced at $10.89 and the shares are 0.29 points up or 2.74% higher compared to its previous closing price of $10.6. The stock had 4.855 million contracts set over the past session. AEO shares’ daily volume is compared to its average trading volume at 7.686 million shares. However, it has a float of 154 million and although its performance was 8.9% over the week, it’s one to watch. Analysts have given the AEO stock a yearly average price target of $12.72 per share. It means the stock’s upside potential is 16.8% with the AEO share price recently placing at $10.34 to $10.92. However, some brokerage firms have priced the stock below the average, including one that has called $7.
The shorts are running away from the American Eagle Outfitters, Inc. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the AEO shares have declined. Short interest in the stock represents just 19.15% of its float, but the volume has dropped by 0.
In the last trading session, American Eagle Outfitters, Inc. (NYSE:AEO) raised by $0.89 over the week and gained $0.23 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $18.01. The stock recorded its established 52-week high on 09/13/19.
Since 04/24/20, the stock has traded to a low of $6.53 at 66.64%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.16. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, American Eagle Outfitters, Inc.’s two-week RSI is 52.39. This suggests that the stock is neutral at the moment and that AEO shares’ price movement remains stable. The stochastic readings are equally revealing at 79.06% meaning the AEO share price is currently in oversold territory.
The technical chart shows that the AEO stock will likely settle at between $11.09 and $11.3 per share. However, if the stock dips below $10.51, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $10.14.
Currently, the stock is trading in the green of MACD, with a reading of 0.34. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Citigroup raised their recommendation for AEO from Neutral to Buy in July 30 review while maintain their target price of $12 to $14. Morgan Stanley analysts upgraded their recommendation of the stock from Underweight to Equal-Weight while keeping its target price at $11 in a flash note released to investors on June 04. Raymond James seeing the improvements upgraded the stock from Mkt Perform to Outperform on May 06, placing it at $10.
The average rating for the AEO equity is 2.65 and is currently gathering a bullish momentum. Of 17 analysts tracking American Eagle Outfitters, Inc. polled by Reuters, 8 rated AEO as a hold. The remaining 9 analysts were split evenly. However, the split wasn’t equal as a majority (7) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the AEO stock price is 11.31X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 287.5. American Eagle Outfitters, Inc. has its P/E ratio at 1.8, which means that the stock is currently trading at a discount relative to the 8.3 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for American Eagle Outfitters, Inc. (NYSE:AEO) will increase by about 47.54%, which will see them reach $814.41 million. The company’s full-year revenues are, however, expected to diminish by about -13.23%, down from $4310 million to $3740 million. AEO’s expected adjusted earnings should drop almost -143.59% to end up at -$0.17 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -119.59% to record -$0.29/share.