AFG trade ideas
AMERICAN EAGLE - LongsMy positive view:
1) AEO is well positioned as one of the most 'inclusive' brands to outperform peers
2) consistently solid comps (+2%, 20th consecutive quarter of growth) and healthy fundamentals (ample
liquidity and little debt), which underscores strength of leading brands and the company's ability to expand footprint (+70 in FY 21) and
capture share from competitors' woes like GPS and LB, which I expect to shutter 230 and 53 stores through FY 21
3) AEO boasts an attractive yield (4.3%).
Risks: margin headwinds tariffs and supply chain disruptions from the coronavirus, an estimate a $0.01 headwind in the first quarter of FY 21. About 30% of AEO's production comes from China and we see figure falling below 20% in 2020.
A 12-month target of $16 is 11.3x, FY 21
EPS estimate of $1.41, below 3-year historical forward P/E average, reflecting expectation that apparel is in for a tough 2020 due to:
1) increased acceptance of secondhand clothing;
2) a softening economic environment;
3) thinning retail traffic due to coronavirus. (January clothing sales dropped 3.1% from December, the steepest drop since March
2009.)
AEO double bottomAEO is rebounding off of a double-bottom. Volume today and yesterday was very high, signifying that there's lots of activity at this price. Risk is ~7%, which is pretty high, but the risk-reward ratio is ~5.5, which is not bad. MACD is showing a sell signal, but RSI and the price movement is showing that it is (hopefully) a good time to buy.
Other analysts are also saying to buy or hold, and I know other people who have similar ideas.
I entered in at $6.82 and set the stop loss at $6.40.
$AEO American Eagle to $9.75
Bullish divergence
Double bottom
Moving averages reclaimed, 50ma next stop
AEO - AMERICAN EAGLE wow!American eagle dropped 16.49% today, that's nuts...
GLHF, trade at your own risk!
$AEO - American Eagle - WEEKLY CHART - Strong Channel FormationVery easy chart on the eyes. Predictability to follow this channel is very high IMO. Support from the lower line on channel already tested and confirmed. Might be worth a long position at this point in time.
$AEO Looks To Be A Good Risk/Reward Play$AEO has a multiple bottom in place and is on the verge of breaking out of the downtrend line. With the stock trading at just 9.7x earnings, there's been talk of M&A happening in the beaten-down retail space. Citi sees M&A optionality with Abercrombie & Fitch (NYSE:ANF). The firm thinks Amazon (NASDAQ:AMZN) should take a look at an acquisition or a merger with American Eagle Outfitters (NYSE:AEO) should be considered.
Also within the apparel sector - PVH (NYSE:PVH), V.F. Corp. (NYSE:VFC) and Capri Holdings (NYSE:CPRI) are seen as potential buyers of an attractive brand like Decker Outdoors' (NYSE:DECK) Hoka brand or Oxford Industries' (NYSE:OXM) Tommy Bahama, Lilly Pulitzer and Southern Tide brands. Columbia Sportswear (NASDAQ:COLM) and L Brands' Victoria's Secret business (NYSE:LB) are mentioned as potential targets.
There's also room for short covering as 14.5% of the float is short.
American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. The company also provides jeans, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women. In addition, it offers sports apparel under the Tailgate brand; and menswear products under the Todd Snyder New York brand name. As of March 6, 2019, it operated approximately 934 American Eagle stores, 262 Aerie stores, 5 Tailgate stand-alone stores, and 1 Todd Snyder stand-alone store in the United States, Canada, Mexico, China, and Hong Kong. It also ships to 81 countries through its Websites; and offers its merchandise at 231 locations operated by licensees in 24 countries, as well as provides products through its Websites ae.com, aerie.com, and ToddSnyder.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
As always, trade with caution and use protective stops.
Good luck to all!
American Eagle Outfitters bullish trend line breakI've been closely watching American Eagle Outfitters for this moment. With a P/E under 10, the stock is attractively valued. It has an 8.4/10 analyst summary score and is rated highly undervalued by S&P Capital IQ. The average analyst price target of $20.33 implies 25% upside from the current price. With an RSI of about 57 on the daily chart, the stock has room to run. It ought to hit about $16.75 soon. It might then pull back a bit before heading up to $17.75. The best-case scenario for the medium term is probably about $20.
American Eagle Outfitters_Trading Buy_Short TermThe stock has touched a new low of $13.80 and re bounce to its green support line with high volume. Near-term buy with resistance at $15.90 observed.
$AEO Bulls keep American Eagle above vital $14 level.Entry level $14.32 = Target price $15.00 = Stop loss $13.89
Nice reversal off the earnings lows, bulls holding the $14.
Average analysts price target $17
P/E ratio 9.8
short interest 14%
American Eagle Outfitters, Inc. is a multi-brand specialty retailer. It offers an assortment of apparel and accessories for men and women under the American Eagle Outfitters brand, and intimates, apparel and personal care products for women under the Aerie brand. The firm operates stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom. It also acquired two emerging brands to complement its existing brands, Tailgate, a vintage sports-inspired apparel brand, and Todd Snyder New York, a premium menswear brand. The company was founded in 1977 and is headquartered in Pittsburgh, PA.
Momentum is changing in American EagleAEO has been in a long-term downtrend. After last earnings it got a nice spike, but then it came back down. Lately its momentum has been changing after two bullish trend line breaks. It's cheap with a current P/E of about 10, and it's had several recent analyst upgrades. I am holding AEO until it gets close to the next trend line. Then I will sell and wait for the trend line break as a signal to re-enter.
$AEO Bounce from 52-week lows Targeting 22 $AEO American Eagle Outfitters, Inc...Looks like good fish but after recorded 52-weeks lows at 13.66 then bounce with huge volume and closed at 17.3 after 3 days . Approx. 15% from the bottom which is good signal for long-term uptrend but may be slow one. I draw target to 22 which almost 80% from the bottom and could be extended to 26 but as i said its looks like will take some time to achieve theses goals.
American Eagle Outfitters Long Into earningsAVERAGE ANALYSTS PRICE TARGET $22
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 12
SHORT INTEREST 11%
COMPANY PROFILE
American Eagle Outfitters, Inc. is a multi-brand specialty retailer. It offers an assortment of apparel and accessories for men and women under the American Eagle Outfitters brand, and intimates, apparel and personal care products for women under the Aerie brand. The firm operates stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom. It also acquired two emerging brands to complement its existing brands, Tailgate, a vintage sports-inspired apparel brand, and Todd Snyder New York, a premium menswear brand. The company was founded in 1977 and is headquartered in Pittsburgh, PA.
$30 Million buyback announced by American Eagle Outfitters American Eagle Outfitters announces that the board authorized an additional 30M shares for repurchase through February 3, 2024.
The retailer says the new buyback allowance brings the shares available for purchase under the company's publicly announced share repurchase authorizations to approximately 37.4M shares.
"Consistent financial performance has led to strong free cash flow and a substantial cash balance even after making investments in our business to fuel future growth. The increased authorization and continuation of our cash dividend policy underscore our confidence in long-term growth initiatives and AEO’s commitment to delivering shareholder returns," notes AEO Jay Schottenstein.
By: Clark Schultz, SA News Editor
American Eagle Outfitters channel playAmerican Eagle recently dropped to the bottom of its channel on a couple analyst downgrades, but it could see a short-term rebound. It's a buy Monday below 16.70, with stop loss 16.62.
Long American Eagle (AEO) nice Risk Reward Option or equity playAmerican Eagle oversold, and the accelaration in the stock is not justified (in my opinion). They are on the pace of gaining market share from VS and continue to grow. I believe pace of sell off was just too steep. Based on recent high frequency economic data and Jerome Powell's comments, consumer spending is solid and US retail sales are good, I believe close to the next earnings report I am expecting a pick up in the stock price.There are signs of strong support at 16.60 and signs of weekly consolidation at 16.82. I believe price will be pushed up towards 17.15, 17.40, and 17.50 and breakout from there towards mid $18 levels.
AEO Long - Oversold and now has some momentumThis trade does have down potential as any trade does.
AEO has just gotten past the horrible 4th quarter sales from last year, and consumer buying power has risen. I think the stock has over sold, and if you look at June 11th, that looks closely like a modified morning star (bullish).
Now- the sad truth is that the very next day the stock went back down on June 12th, and this makes not a true morning star. On June 13 +14 stock prices rose up beyond the opening price of the 12th and I jumped in.
Looking at a target between $18.50 and $20.00 as solid gains. Yes, that is a large area, but if you notice at around $19.75 is where the shake out really happens, making that a great short gains target and over $2 of profit.
Stop /Loss has been placed at $16.59, the low of the price on June 12th to reduce any horrible loss, and roughly a $1 loss.
Let me know what you think.
I am not a financial advisor, I just like to share my thoughts and trades with the community.
AEO Short Day Trade AEO looks weak to me, the daily chart is broken, its below all its daily moving averages of 20,50,100,200 sma. its made lower relative highs and lower lows, catching support at 17.02. I would short it today if it shows good volume, a weak premarket pattern with lower lows and lower highs, profit target being the 17.02 support area.
