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Here's Why American Eagle Outfitters (AEO) is a Strong Growth Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

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American Eagle Outfitters (AEO)

Based in Pittsburgh, PA, American Eagle Outfitters Inc. is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15–25 years. American Eagle, along with its subsidiaries, engages in the designing and marketing of casual clothing. The company’s assortment includes jeans, cargo pants, graphic T-shirts as well as a range of accessories, outerwear and footwear.

AEO sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 15.1% and 3.2% year-over-year, respectively.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.04 to $1.75 per share. AEO also boasts an average earnings surprise of 28.1%.

American Eagle Outfitters is also cash rich. The company has generated cash flow growth of 4.3%, and is expected to report cash flow expansion of 32% in 2025.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, AEO should be on investors' short lists.

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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

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Zacks Investment Research