American Eagle Outfitters (NYSE:AEO) Rating Increased to Strong-Buy at Zacks Research

11 Sep 2026, 10:37 by Sarita Garza · The Markets Daily

American Eagle Outfitters (NYSE:AEO – Get Free Report) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Wednesday, Zacks reports.

AEO has been the subject of several other reports. William Blair restated a “buy” rating on shares of American Eagle Outfitters in a research note on Wednesday, July 15th. Bank of America reiterated an “underperform” rating and issued a $16.00 price objective on shares of American Eagle Outfitters in a research note on Friday, August 14th. The Goldman Sachs Group set a $22.00 target price on shares of American Eagle Outfitters in a report on Monday, June 1st. Telsey Advisory Group decreased their target price on shares of American Eagle Outfitters from $20.00 to $18.00 and set a “market perform” rating for the company in a research report on Thursday. Finally, Morgan Stanley decreased their target price on shares of American Eagle Outfitters from $18.00 to $17.00 and set an “equal weight” rating for the company in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $19.36.

Read Our Latest Report on AEO

American Eagle Outfitters Stock Performance

AEO opened at $14.53 on Wednesday. The company has a market cap of $2.44 billion, a P/E ratio of 7.42, a price-to-earnings-growth ratio of 3.69 and a beta of 1.33. American Eagle Outfitters has a 52-week low of $14.06 and a 52-week high of $28.46. The company has a quick ratio of 0.53, a current ratio of 1.55 and a debt-to-equity ratio of 0.05. The firm’s 50-day moving average price is $16.97 and its 200-day moving average price is $17.55.

American Eagle Outfitters (NYSE:AEO – Get Free Report) last issued its quarterly earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a return on equity of 24.02% and a net margin of 5.91%.The company had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.37 billion. During the same quarter in the previous year, the firm posted $0.45 EPS. The firm’s revenue was up 7.5% compared to the same quarter last year. As a group, equities analysts anticipate that American Eagle Outfitters will post 1.76 EPS for the current fiscal year.

Insider Activity

In related news, Director Noel Spiegel sold 2,892 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total value of $48,527.76. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director David Sable sold 5,779 shares of the firm’s stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $17.23, for a total value of $99,572.17. Following the completion of the transaction, the director owned 53,481 shares in the company, valued at approximately $921,477.63. This trade represents a 9.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,563 shares of company stock worth $196,599 over the last 90 days. 8.95% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On American Eagle Outfitters

Large investors have recently made changes to their positions in the stock. Quadrant Capital Group LLC grew its holdings in American Eagle Outfitters by 31.8% in the 4th quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer’s stock valued at $49,000 after buying an additional 447 shares in the last quarter. Los Angeles Capital Management LLC increased its stake in shares of American Eagle Outfitters by 2.1% in the 4th quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer’s stock worth $669,000 after acquiring an additional 510 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of American Eagle Outfitters by 31.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,870 shares of the apparel retailer’s stock worth $48,000 after acquiring an additional 694 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of American Eagle Outfitters by 1.3% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 57,817 shares of the apparel retailer’s stock worth $989,000 after acquiring an additional 731 shares during the period. Finally, Commonwealth Equity Services LLC boosted its position in shares of American Eagle Outfitters by 3.0% during the 4th quarter. Commonwealth Equity Services LLC now owns 24,847 shares of the apparel retailer’s stock valued at $655,000 after acquiring an additional 734 shares during the last quarter. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting American Eagle Outfitters

Here are the key news stories impacting American Eagle Outfitters this week:

Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $1.38 billion, narrowly exceeding estimates. Total comparable sales rose 6%, supported by Aerie and OFFLINE, while earnings of $0.79 per share significantly surpassed the roughly $0.22 consensus estimate. American Eagle Outfitters beats quarterly revenue estimates
Positive Sentiment: Management cited strength in Aerie intimates, sleepwear and apparel, and issued a stronger fiscal 2026 operating-income outlook that incorporates tariff-related benefits. The company’s low leverage and ongoing brand improvement provide additional financial support. American Eagle Q2 Earnings Beat on Tariff Refunds, Aerie Strength
Neutral Sentiment: Analysts reduced price targets following the report: Morgan Stanley lowered its target to $17 and Telsey Advisory Group to $18, while UBS cut its target to $27 but retained a Buy rating. These targets remain above the recent trading level, but the revisions signal reduced confidence in near-term execution.
Negative Sentiment: The headline profit beat was substantially helped by an estimated $161 million in tariff refunds, raising concerns about earnings durability. Without that benefit, underlying profitability and merchandise margins would have appeared less robust. American Eagle shares slide as flat margin outlook, weak core brand weigh
Negative Sentiment: American Eagle’s core-brand comparable sales fell 1%, and management acknowledged that more work is needed on the banner. Aerie’s sales growth also slowed, while the company maintained its annual same-store-sales forecast and projected flat third-quarter gross margins. Investors interpreted the outlook as evidence that cautious consumers and brand pressure remain unresolved. American Eagle Stock Slumps on Signs of Weakness at Namesake Brand

American Eagle Outfitters Company Profile

(Get Free Report)

American Eagle Outfitters, Inc (NYSE: AEO) is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company’s flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.