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Is this Large Market Cap Stock target price reasonable for American Eagle Outfitters, Inc. (NYSE:AEO)?

The company in question is, American Eagle Outfitters, Inc. (NYSE:AEO) currently with a stock price of 17.16 (-0.81% today). The market cap for American Eagle Outfitters, Inc. is 3113.83, and is in the sector Services, and Apparel Stores industry. The target price for American Eagle Outfitters, Inc. is 20.09. Currently American Eagle Outfitters, Inc. is trading with a P/E of 14.18, and a forward P/E of 12.33. Average volume for American Eagle Outfitters, Inc. is 4447.3 and so far today it is 1575101.

Performance in the last year for American Eagle Outfitters, Inc. has been 14.18%. For EPS growth, American Eagle Outfitters, Inc. has seen a growth of 138.90%, and is looking to grow in the next year to 7.35%. More long term stats show that EPS growth has been 2.30% over the last five years and could be 13.40% for the next five years. American Eagle Outfitters, Inc. has seen sales growth quarter over quarter at 3.20%, with EPS growth quarter over quarter at 34.20%. The 20-day simple moving average is -5.43%, with the 200-day simple moving average coming to 7.73%.

Since the IPO date for American Eagle Outfitters, Inc. on the 4/14/1994, American Eagle Outfitters, Inc. has seen performance year to date to be 14.22%. With American Eagle Outfitters, Inc. trading at 17.16, the dividend yield is 2.89%, and the EPS is 1.22.

So could American Eagle Outfitters, Inc., be undervalued? Well as said before P/E is 14.18. The PEG is 1.06, P/S is 0.87 and the P/B is at 2.85. The P/cash is 12.56, with P/free cash flow at 19.61.

American Eagle Outfitters, Inc. ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 0.8. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, American Eagle Outfitters, Inc. has a gross margin of 37.70%, an operating margin of 9.80% and a profit margin of 6.60%.Payout ratio for American Eagle Outfitters, Inc. is 39.70%. Return on assets come to 14.00% with return on investment coming to 20.10%.

Insider ownership for American Eagle Outfitters, Inc., is at 0.20% and institutional ownership comes to 98.90%. Outstanding shares are at 179.99. While shares float is 170.79. The float short is currently 22.60%, and short ratio is 8.68.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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