Is American Eagle Outfitters (AEO) a Sell? The Stock Formed Bearish Double Bottom Chart Pattern

September 17, 2017 - By Henry Gaston

The chart of American Eagle Outfitters (AEO) shows a double bottom with $12.80 target or 4.00 % below today’s $13.33 share price. The 6 months chart pattern indicates high risk for the $2.36B company. It was reported on Sep, 17 by Finviz.com. If the $12.80 price target is reached, the company will be worth $94.40M less. Double bottoms are rare but powerful chart patterns.

The stock decreased 0.07% or $0.01 on September 15, reaching $13.33. About 5.56 million shares traded. American Eagle Outfitters (NYSE:AEO) has declined 31.50% since September 17, 2016 and is downtrending. It has underperformed by 48.20% the S&P500.

Wall Street await American Eagle Outfitters (NYSE:AEO) to release earnings on November, 29. Analysts forecast earnings per share of $0.39, down exactly $0.02 or 4.88 % from 2014’s $0.41 EPS. The expected AEO’s profit could reach $69.05M giving the stock 8.54 P/E in the case that $0.39 earnings per share is reported. After posting $0.19 EPS for the previous quarter, American Eagle Outfitters’s analysts now forecast 105.26 % EPS growth.

American Eagle Outfitters (NYSE:AEO) Ratings Coverage

Among 27 analysts covering American Eagle Outfitters (NYSE:AEO), 13 have Buy rating, 1 Sell and 13 Hold. Therefore 48% are positive. American Eagle Outfitters had 70 analyst reports since August 4, 2015 according to SRatingsIntel. RBC Capital Markets maintained the stock with “Buy” rating in Monday, June 19 report. The firm has “Buy” rating given on Friday, May 27 by Jefferies. The firm has “Neutral” rating by Mizuho given on Thursday, January 5. As per Tuesday, September 15, the company rating was downgraded by B. Riley & Co. The company was initiated on Wednesday, January 25 by Buckingham Research. The rating was maintained by Jefferies on Thursday, August 3 with “Buy”. FBR Capital downgraded the stock to “Mkt Perform” rating in Tuesday, November 15 report. The rating was maintained by Jefferies with “Buy” on Friday, September 8. Wolfe Research maintained American Eagle Outfitters (NYSE:AEO) on Monday, January 11 with “Outperform” rating. The stock has “Outperform” rating by Wolfe Research on Tuesday, August 18.

More notable recent American Eagle Outfitters (NYSE:AEO) news were published by: Investorplace.com which released: “American Eagle Outfitters (AEO) Stock Is Quickly Losing Relevance” on August 22, 2017, also Fool.com with their article: “How American Eagle Outfitters Is Stacking the Deck Against the Competition” published on August 29, 2017, Seekingalpha.com published: “American Eagle Outfitters: Here’s The Thing” on August 23, 2017. More interesting news about American Eagle Outfitters (NYSE:AEO) were released by: Seekingalpha.com and their article: “American Eagle Outfitters Has Something To Prove” published on September 06, 2017 as well as Marketwatch.com‘s news article titled: “American Eagle Outfitters shares soar after earnings, revenue beat estimates” with publication date: August 23, 2017.

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