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American Eagle Outfitters Stock: Clothing Icon Poised For Long-Term Dominance

Apr. 25, 2022 1:20 PM ETAmerican Eagle Outfitters, Inc. (AEO)42 Comments
Nikola Lapenna profile picture
Nikola Lapenna


  • AEO, a leading clothing manufacturer, is quietly becoming the leader in the mid-cap retail clothing space.
  • The company's proven track record of 29 consecutive quarters of double-digit growth and no debt (pre-COVID) shows consistency worth betting on as a reopening trade.
  • They recently provided a stellar long-term supply chain strategy to compete with large-cap suppliers (like Amazon).
  • The AEO stock is undervalued and should outperform the broader market as vertical integration synergies start to bear fruit. I set a price target of $40/share.

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This article was written by

Nikola Lapenna profile picture
With over three years of finance and consulting experience, Nikola is laser focused on finding value in forgotten and beaten down public equities. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. An avid golf fan, Nikola enjoys picking stocks that need a "mulligan"; a sluggish quarter that sees market sentiment trend downward doesn't scare Nikola. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AEO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a licensed financial advisor and this article cannot be used as the sole basis to purchase a stock. It is an opinion only. For questions on my modeling & assumptions, contact via DM.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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