Despite Its Plunge, American Eagle Outfitters Is Still An Excellent Fit For Your Portfolio

2026-05-29 10:54:22 ET

After the market closed on May 28th, the management team at American Eagle Outfitters ( AEO ) announced financial results for the first quarter of the company's 2026 fiscal year. At first glance, things look pretty good. Revenue and adjusted earnings per share both came in above what analysts were hoping to see. The overall trajectory of the company is positive and comparable sales were up significantly. However, shares fell about 12.2% in after hours trading. This was because of weakness with its largest brand. However, I view this as an irrational move lower. The fact of the matter is that the stock is incredibly cheap both on an absolute basis and relative to other similar firms. I have long been bullish about it, in fact. And up until this point, that bullishness has worked out nicely....

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