Track market-moving stories before they get noisy

In the latest close session, American Eagle Outfitters (AEO - Free Report) was down 1.97% at $17.46. The stock's performance was behind the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.05%.

Prior to today's trading, shares of the teen clothing retailer had gained 11.87% outpaced the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.

Investors will be eagerly watching for the performance of American Eagle Outfitters in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.49, marking a 7.55% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.46 billion, up 6.83% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.24 per share and a revenue of $5.86 billion, demonstrating changes of +49.33% and +6.63%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for American Eagle Outfitters. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.16% higher. American Eagle Outfitters is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, American Eagle Outfitters is at present trading with a Forward P/E ratio of 7.97. This signifies a discount in comparison to the average Forward P/E of 14.48 for its industry.

We can additionally observe that AEO currently boasts a PEG ratio of 4.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Apparel and Shoes industry held an average PEG ratio of 1.25.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

American Eagle Outfitters (AEO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this teen clothing retailer have returned +19.4% over the past month versus the Zacks S&P 500 composite's +1.5% change. The Zacks Retail - Apparel and Shoes industry, to which American Eagle belongs, has gained 12% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, American Eagle is expected to post earnings of $0.49 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $2.24 points to a change of +49.3% from the prior year. Over the last 30 days, this estimate has changed +3.2%.

For the next fiscal year, the consensus earnings estimate of $1.89 indicates a change of -15.2% from what American Eagle is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for American Eagle.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of American Eagle, the consensus sales estimate of $1.46 billion for the current quarter points to a year-over-year change of +6.8%. The $5.86 billion and $6.07 billion estimates for the current and next fiscal years indicate changes of +6.6% and +3.5%, respectively.

Last Reported Results and Surprise HistoryAmerican Eagle reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.79 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $1.37 billion, the reported revenues represent a surprise of +0.99%. The EPS surprise was +276.19%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

American Eagle is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Eagle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: American Eagle Outfitters (AEO - Free Report) 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 design 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 is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.13; value investors should take notice.

For fiscal 2027, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.48 to $2.24 per share. AEO boasts an average earnings surprise of +86.3%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AEO should be on investors' short list.

The menswear and lifestyle capsule brings Scottish patterns and textiles to Todd Snyder's Americana signatures, with a campaign starring Ben Ahlers shot at the Lagavulin Distillery on Islay.

, /PRNewswire/ -- Today, Todd Snyder and Lagavulin Single Malt Scotch Whisky release Time & Craft, a limited-edition menswear and lifestyle collection rooted in a shared appreciation for character developed through patience and process. Arriving as Todd Snyder New York marks its 15th anniversary, the collaboration brings together a designer known for giving new life to classic styles with a whisky shaped by more than two centuries of history on Islay, Scotland.

9425151-Lagavulin-X-TODD-SNYDER

The Time & Craft Collection by Todd Snyder in partnership with Lagavulin Single Malt Scotch Whisky. Photo Credit: Boo George.

Ben Ahlers at the Lagavulin Distillery with the Tartan Blanket from the Todd Snyder x Lagavulin Time & Craft Collection. Photo Credit: Boo George.

Lagavulin 16-Year-Old Single Malt Scotch Whisky at the Lagavulin Distillery on Islay. Photo Credit: Boo George.

Ben Ahlers alongside the copper stills at the Lagavulin Distillery wearing the Todd Snyder x Lagavulin Suede Stable Jacket from the Time & Craft Collection. Photo Credit: Boo George.

Ben Ahlers shares a neat pour of Lagavulin 16-Year-Old Single Malt Scotch Whisky with Donnie and Shane MacKinnon, former and current Lagavulin Distillery employees. Photo Credit: Boo George.

Ben Ahlers joins former Lagavulin Warehouse Manager Iain ‘Pinky’ McArthur in his peat fields on Islay, Scotland. Photo Credit: Boo George.

Ben Ahlers with Lagavulin 16-Year-Old Single Malt Scotch Whisky. Photo Credit: Boo George. Experience the full interactive Multichannel News Release here: https://www.multivu.com/lagavulin/9425151-en-todd-snyder-lagavulin-limited-edition-menswear-lifestyle-collection 

The collection takes its name and inspiration from the Time & Craft that is central to both houses, with Lagavulin 16-Year-Old serving as a core reference. This signature expression is made at the Lagavulin Distillery on Islay through a notably slow distillation before spending at least 16 years maturing in oak barrels. For Snyder, that commitment to perfecting craft through time offered a reflection upon his own design process: start with enduring forms and materials, then find new ways to make them relevant. The colors, textures, and atmosphere surrounding Lagavulin's Islay home became a starting point for Time & Craft.

"Lagavulin has been my favorite whisky for years, so I came into this partnership with a connection to the brand," said Todd Snyder, founder of Todd Snyder New York. "As I learned more about how Lagavulin 16-Year-Old is made, I found a lot that felt familiar: the care that goes into choosing materials, knowledge built over generations, and a necessary patience for the process. I wanted the collection to reflect that approach, as well as the character of Islay, in pieces people could wear and live with."

Textiles from Scotland's Lovat Mill anchor the collection's two hero pieces: an Italian suede Stable Jacket lined in the Lagavulin Islay Tartan, originally developed by Simon Goldman and Myles Kusaba, and Todd Snyder's signature Chore Coat, made from another Lovat wool that draws on the tartan's deep greens, peat browns, and copper tones. Introduced in 2025 and officially registered with the Scottish Register of Tartans, the tartan pattern also appears in printed interpretations across a tie, blanket, and neckwear. The capsule is rounded out by a cardigan and beanie knit from superfine merino wool in a custom pattern inspired by the colors of the Scottish moors.

To introduce the collection, the brands traveled to Islay, home to the Lagavulin Distillery, to shoot the Time & Craft campaign. Photography by Boo George and film by Michael Casker place the collection within the island's landscape and working distillery, alongside the people who make the whisky. Actor Ben Ahlers stars as the face of the campaign, bringing his own perspective to a story about how traditions can both endure and evolve.

"Being at Lagavulin, you see what it takes to carry more than 200 years of craft forward," said Ahlers. "I met people who've spent decades at the distillery, passing their knowledge on to the next generation. That experience shapes the whisky, and you can feel the pride people take in making it. Wearing Todd's collection there, I could see how he'd translated that same care into the clothes. It gave me a real appreciation for the time and skill that go into both."

Those people are as much a part of Lagavulin's story as the landscape itself, bringing the knowledge and connection to Islay that inspired the collection into the campaign. Featured alongside Ahlers are former Lagavulin Warehouse Manager Iain "Pinky" McArthur, whose more than 50 years in Scotch have made him an Islay legend; Donnie MacKinnon, who spent 42 years at Lagavulin, and his grandson Shane, who continues the family connection; current Senior Operators Grant Addison and Robert Shaw; and Karen Robertson, an Islay native who grew up overlooking Lagavulin Bay and now works as the Distillery's Events & Experiences Manager.

"As someone who genuinely loves Lagavulin 16-Year-Old, we were excited to immerse Todd in the place behind the whisky - our distillery on the island of Islay - as well as the generations of people who have crafted our spirit for more than 200 years" said Jamie Young, VP Scotch Diageo. "Todd was eager to interpret our principles of tradition and craftsmanship through his own point of view and design process, resulting in a lineup of quality, weatherable pieces that perfectly complement the Scotch that inspired them."

The capsule marks the first chapter of the Todd Snyder New York x Lagavulin partnership, which will continue through in-store experiences and storytelling from Islay. The campaign shoot also produced a larger body of work that will unfold beyond launch, offering a deeper look at the Lagavulin Distillery and the people, places and rituals shaped by time.

The Time & Craft collection is available as of October 8 at toddsnyder.com/lagavulin and select Todd Snyder stores across the U.S. Consumers of legal drinking age can also visit ReserveBar to purchase Lagavulin 16-Year-Old Single Malt Scotch Whisky.

Todd Snyder New York x Lagavulin Time & Craft Collection Product SpecificationsTodd Snyder x Lagavulin Suede Stable Jacket

Made from Italian calf suede produced by Pellemoda in Tuscany, the jacket is lined in the Lagavulin Islay Tartan woven by Lovat Mill in Scotland As suede is a natural material, color may transfer onto other garments or textiles. Avoid wearing with light colors for the first few wears. To care for the jacket, gently brush in one direction with a suede brush to remove debris and blot stains with a dry cloth. Style number: LT3687732 Retail price: $2,498 Images:HERE Todd Snyder x Lagavulin Chore Jacket

Made from 100% wool tweed woven at Lovat Mill in Scotland. The 500-gram fabric combines smoky, earthy colors inspired by the Lagavulin Islay Tartan in a substantial, marled cloth with a soft but rustic feel. Style number: OU161C1078 Retail price: $568 Images:HERE Todd Snyder x Lagavulin Blanket + Carrier

Woven at Lovat Mill in Scotland from pure lambswool, this blanket is soft but sturdy, with a classic, old-school look and feel. The Lagavulin tartan pattern features gentle colors inspired by the distillery and moor — soft coppers, muted heathers, peat and sedge. It comes with a handy carrier, made from Portuguese suede, that secures around the rolled blanket; the single handle is adjustable, so it can be carried by hand or worn over the shoulder. Toss it across your bed or couch, take it to the park, or pack it up for your next weekend away. Style number: AC303 Retail price: $498 Images: Not yet available. Launching late-October. Todd Snyder x Lagavulin Wool Tie

Made in Italy from Italian wool printed with the Lagavulin Islay Tartan pattern. The tie is hand-stitched and untipped, with a 3½-inch width, soft interlining and curtain-back construction. Style number: AC1511547 Retail price: $198 Images:HERE Todd Snyder x Lagavulin Wool Scarf

Made from Italian lambswool printed with the Lagavulin Islay Tartan pattern, with a soft, lightly fuzzy feel. The fabric is lightweight, naturally warm and drapes easily. Style number: AC9911548 Retail price: $148 Images:HERE Todd Snyder x Lagavulin Fair Isle Beanie

Knit from superfine merino wool in a custom Fair Isle pattern colored to evoke the Scottish moors. Features an engineered pattern and a foldover 2x2 ribbed cuff. Fair Isle takes its name from the Scottish island where the knitting tradition originated. Style number: AC3648077 Retail price: $128 Images:HERE Todd Snyder x Lagavulin Fair Isle Sweater Jacket

A modern take on the traditional Fair Isle sweater jacket, knit from superfine merino wool in a custom pattern inspired by the colors of the Scottish moors. Features a double-layered ribbed mock neck, two-way metal zipper, patch pockets and 2x2 ribbed waist and cuffs. Style number: SW5978077 Retail price: $498 Images:HERE ABOUT TODD SNYDER
Todd Snyder is an American fashion designer based in New York City. Since launching his eponymous label in 2011, he has redefined how modern Americans can present themselves to the world in stylish, unexpected ways. From luxurious takes on essential items to bespoke tailoring, Todd's creations show that good style can be attainable and even playful.

Before launching his label, Todd held leading roles at Ralph Lauren, The Gap, and J.Crew. He has been recognized four times by the Council of Fashion Designers of America as a Menswear Designer of the Year nominee and three-time CFDA Swarovski Menswear Award nominee, and was a CFDA/Vogue Fashion Fund finalist. In 2024, Snyder was awarded the 2024 WWD Honors Menswear Designer of the Year.

Snyder currently operates 23 stores across the country, with two more slated to open in 2026. Todd Snyder New York is a wholly owned subsidiary of AEO, Inc. (NYSE: AEO)

For press inquiries, please contact [email protected].

ABOUT LAGAVULIN SINGLE MALT SCOTCH WHISKY
Founded in 1816, Lagavulin has been distilling Single Malt Scotch Whisky on Islay, an island off Scotland's west coast, for more than two centuries. Its portfolio spans renowned expressions, including Lagavulin 16-Year-Old, the brand's iconic core marque, and Lagavulin 11-Year-Old Sweet Peat, the brand's latest permanent expression launched in February 2026, both awarded Gold at the 2025 San Francisco Wine & Spirits Competition, alongside Lagavulin 8-Year-Old, Lagavulin Distillers Edition, and a range of limited releases.

Distillation at Lagavulin takes place across four pear-shaped copper pot stills using a slow process that has long defined the Distillery's style. Heavily peated malted barley provides Lagavulin's distinctive smoky character, while exposure to Atlantic sea air along Lagavulin Bay contributes subtle maritime notes, resulting in whiskies known not only for their smoke, but for the depth and complexity that develop beyond it. Please Enjoy Responsibly. For more information about the Distillery and our portfolio of Single Malt Scotch Whiskies, follow us on Instagram @lagavulinwhisky.

ABOUT DIAGEO
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan's whiskies, Smirnoff and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in nearly 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo's global responsible drinking resource, www.DRINKiQ.com for information, initiatives, and ways to share best practice.

Crafting iconic drinks chosen for life's moments.

SOURCE DIAGEO

American Eagle Outfitters (AEO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this teen clothing retailer have returned +4.1%, compared to the Zacks S&P 500 composite's +0.8% change. During this period, the Zacks Retail - Apparel and Shoes industry, which American Eagle falls in, has gained 0.1%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, American Eagle is expected to post earnings of $0.49 per share, indicating a change of -7.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -12.5% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $2.24 points to a change of +49.3% from the prior year. Over the last 30 days, this estimate has changed +26.9%.

For the next fiscal year, the consensus earnings estimate of $1.89 indicates a change of -15.2% from what American Eagle is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for American Eagle.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For American Eagle, the consensus sales estimate for the current quarter of $1.46 billion indicates a year-over-year change of +6.8%. For the current and next fiscal years, $5.86 billion and $6.07 billion estimates indicate +6.6% and +3.5% changes, respectively.

Last Reported Results and Surprise HistoryAmerican Eagle reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.79 for the same period compares with $0.45 a year ago.

Compared to the Zacks Consensus Estimate of $1.37 billion, the reported revenues represent a surprise of +0.99%. The EPS surprise was +276.19%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

American Eagle is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Eagle. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways AEO's revenue rose 1%, while comparable sales declined 1%, improving from the first quarter.AEO's men's business posted its fourth straight quarter of positive comparable sales.AEO is shifting marketing to conversion as it rebalances inventory and refines product strategies. American Eagle Outfitters, Inc. (AEO - Free Report) showed signs of improvement in the second quarter of fiscal 2026, although its namesake brand still had work to do. American Eagle’s total revenues increased 1% year over year, while comparable sales declined 1%, an improvement from the fiscal first quarter. Management highlighted that men’s business delivered its fourth consecutive quarter of positive comparable sales, while women’s bottoms improved and newer denim fits gained strong customer acceptance.

Store traffic is emerging as an important metric in the brand’s recovery. Management said American Eagle’s stores remained on the lower side of performance, while digital was stronger. However, store trends improved in the fiscal third quarter. Management also noted that American Eagle tends to be a destination at the mall in the back-to-school and holiday periods, with stores typically performing better in these peak periods.

The company is also shifting marketing spending toward conversion-focused tactics after spending the previous four quarters building brand awareness. Management specifically identified store traffic and conversion against that traffic as definite focuses for American Eagle going forward. Digital marketing and performance marketing are being emphasized to encourage purchase behavior, with management noting some traction alongside the sequential improvement seen quarter-to-date.

Product strategy also remains a key part of American Eagle’s improvement efforts. The company is working through older seasonal inventory, including shorts and certain fashion products, while continuing to rebalance inventory. Management also highlighted sequential improvement in denim following a pivot toward low-rise and other fits that were gaining traction.

Overall, American Eagle identified product strategies, store traffic and conversion against that traffic as key focuses for improving the brand’s performance.

The Zacks Rundown for AEOAEO’s shares have gained 8% in the past six three months against the industry’s decline of 10.6%. The company currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 8.85X, lower than the industry’s average 12.24X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AEO’s current fiscal year earnings implies a year-over-year growth of 49.3%, and the same for next fiscal year earnings implies a year-over-year decline of 15.2%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

FIGS, Inc. (FIGS - Free Report) operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current fiscal-year sales and earnings implies growth of 19.7% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.

Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the consensus mark for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.

Boot Barn, Holdings Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. Boot Barn currently carries a Zacks Rank of 2.

The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.

Key Takeaways AEO's American Eagle brand sales rose 1% as women responded well to outfitting. bottoms and new denim fits.AEO saw strong acceptance of wide-leg straight and low-rise denim, supporting sequential improvement.AEO is rebalancing inventory and shifting marketing toward conversion while refining its product strategy. American Eagle Outfitters, Inc. (AEO - Free Report) is showing sequential improvement at its American Eagle (AE) brand as it refines its product strategies, with women’s customers responding well to outfitting, fashion bottoms and new denim fits. In the second quarter of fiscal 2026, American Eagle brand sales increased 1%, while the company’s consolidated sales grew 8%. American Eagle saw strong customer acceptance of new women’s denim fits, including wide-leg straight and low-rise styles. However, management indicated that there remains an opportunity to restore consistent growth across categories.

AE’s brand awareness and cultural significance remain strong, while its active customer file continues to grow. These trends provide a broader backdrop as the company works to improve performance across categories and refine its product strategies. Denim has become an area of sequential improvement as American Eagle adjusts its assortment toward better-performing fits.

Management said that new fashion fits, particularly wide-leg straight and low-rise, gained strong customer acceptance. Jennifer Foyle said that the company has seen sequential improvement in denim after pivoting toward the fits that were working, with low-rise becoming a key focus. The repositioned denim assortment also featured in the company’s back-to-school marketing launch.

The broader outlook indicates that denim performance is improving alongside broader efforts to strengthen the business. The company is focusing on product strategy, traffic and conversion. Marketing is shifting toward conversion-focused spending, alongside continued efforts to rebalance inventory and work through older and seasonal merchandise.

However, management indicated that further work remains. AE is still working through older denim fits and rebalancing inventory, while women’s bottoms have improved but remain mixed. Pants and cargoes have performed exceptionally well, although the company still has work to do to rebalance denim. Overall, American Eagle’s new denim fits are gaining customer acceptance, with sequential improvement in denim. Management continues to see opportunities to improve performance and rebalance inventory.

The Zacks Rundown for AEOAEO’s shares have declined 2.4% in the past six months compared with the industry’s decline of 13%. The company currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 7.98X, lower than the industry’s average 11.90X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AEO’s current fiscal year earnings implies 44.7% year-over-year growth, while the same for next fiscal year earnings implies a 12.4% year-over-year decline.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

FIGS, Inc. (FIGS - Free Report) operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. At present, FIGS carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’s current fiscal-year sales and earnings implies growth of 19.7% and 89.5%, respectively, from the year-ago figures. FIGS has delivered a trailing four-quarter earnings surprise of 201.8%, on average.

Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4%, while the same for earnings indicates growth of 96.7% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 236.2%, on average.
 
Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2.

The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.

Nykredit A S purchased a new position in shares of American Eagle Outfitters, Inc. (NYSE:AEO – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,933,310 shares of the apparel retailer’s stock, valued at approximately $33,253,000. Nykredit A S owned approximately 1.15% of American Eagle Outfitters as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also modified their holdings of the company. Plato Investment Management Ltd acquired a new stake in American Eagle Outfitters during the 2nd quarter worth approximately $25,000. Allworth Financial LP purchased a new stake in shares of American Eagle Outfitters during the 2nd quarter valued at about $36,000. EverSource Wealth Advisors LLC lifted its position in 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 in the last quarter. Quantbot Technologies LP acquired a new position in shares of American Eagle Outfitters during the second quarter worth $57,000. Finally, Parkside Financial Bank & Trust boosted its stake in shares of American Eagle Outfitters by 772.7% in the second quarter. Parkside Financial Bank & Trust now owns 3,997 shares of the apparel retailer’s stock valued at $69,000 after purchasing an additional 3,539 shares during the period. 97.33% of the stock is currently owned by hedge funds and other institutional investors.

American Eagle Outfitters Trading Up 0.9% American Eagle Outfitters stock opened at $15.04 on Friday. The company has a market cap of $2.52 billion, a P/E ratio of 7.67, a PEG ratio of 3.51 and a beta of 1.33. The firm’s 50-day moving average is $16.78 and its 200-day moving average is $17.21. American Eagle Outfitters, Inc. has a 1 year low of $14.06 and a 1 year high of $28.46. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.62 and a current ratio of 1.59.

American Eagle Outfitters (NYSE:AEO – Get Free Report) last announced its quarterly earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a return on equity of 23.63% and a net margin of 5.91%.The business had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.37 billion. During the same period in the prior year, the firm earned $0.45 EPS. The business’s quarterly revenue was up 7.5% on a year-over-year basis. On average, equities analysts expect that American Eagle Outfitters, Inc. will post 2.17 earnings per share for the current year. American Eagle Outfitters Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be paid a $0.125 dividend. The ex-dividend date is Friday, October 9th. This represents a $0.50 annualized dividend and a dividend yield of 3.3%. American Eagle Outfitters’s dividend payout ratio (DPR) is presently 25.51%.

Insider Activity at American Eagle Outfitters In other news, Director Noel Spiegel sold 2,892 shares of the company’s stock in a transaction on Tuesday, July 7th. The stock was 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 Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $17.23, for a total value of $99,572.17. Following the sale, the director directly owned 53,481 shares in the company, valued at $921,477.63. This trade represents a 9.75% decrease in their ownership of the stock. 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 ninety days. 8.95% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes A number of research firms recently weighed in on AEO. UBS Group lowered their price target on shares of American Eagle Outfitters from $31.00 to $27.00 and set a “buy” rating for the company in a report on Thursday, September 10th. Citigroup lowered their target price on American Eagle Outfitters from $24.00 to $18.00 and set a “neutral” rating for the company in a research note on Monday, June 1st. JPMorgan Chase & Co. lifted their target price on American Eagle Outfitters from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 18th. Barclays lowered their price objective on American Eagle Outfitters from $17.00 to $15.00 and set an “equal weight” rating for the company in a research note on Thursday, September 10th. Finally, Bank of America reissued an “underperform” rating and set a $16.00 price target on shares of American Eagle Outfitters in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $19.36.

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American Eagle Outfitters, Inc (NYSE:AEO) is a specialty retailer offering casual apparel, accessories and footwear for young women and men. Its product assortment includes jeans, tops, dresses, intimates, loungewear and activewear, with merchandise sold through company-operated stores and digital channels.

The company’s principal brands include American Eagle, which focuses on casual lifestyle clothing and denim, and Aerie, which offers intimates, activewear and loungewear. Its brand portfolio has also included OFFLINE by Aerie, a performance and wellness-oriented line, and Todd Snyder, a menswear brand known for elevated casual clothing and tailoring.

Founded in 1977, American Eagle Outfitters is headquartered in Pittsburgh, Pennsylvania.

Read More Five stocks we like better than American Eagle Outfitters J.B. Hunt’s Stock Plunges After Market Misprices Profit Warning 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lennar’s Q3 Miss Hides a Stronger Operating Story Beneath the Housing Slump These 3 Stocks Are Drawing Insider Buyers for Very Different Reasons

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PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) announced a quarterly cash dividend of $0.125 per share. The dividend was declared on September 15, 2026 and is payable on October 28, 2026 to stockholders of record at the close of business on October 9, 2026.

About American Eagle Outfitters, Inc.

American Eagle Outfitters, Inc. (NYSE: AEO) is a leading global specialty retailer with a portfolio of beloved apparel brands including American Eagle, Aerie, OFFL/NE by Aerie, Todd Snyder and Unsubscribed. Rooted in optimism, inclusivity and authenticity, AEO’s brands empower every customer to celebrate their unique personal style by offering casual, comfortable, timeless outfitting and high-quality products that are made to last.

AEO Inc. operates stores in the United States, Canada and Mexico, with merchandise available in more than 30 countries through a global network of license partners. Additionally, the company operates a robust e-commerce business across its brands. For more information, visit aeo-inc.com.

More News From American Eagle Outfitters, Inc.

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American Eagle Outfitters reported Q2 revenue growth of 9.4% y/y, but headline profitability was distorted by $179M in tariff refunds. The Aerie and OFFLINE brands are the primary growth levers, with Aerie comp sales up 19%, while the mainline AE brand continues to struggle with fashion missteps and margin pressure. Core operations remain weak: underlying gross and operating margins declined, free cash flow stayed negative even with tariff refunds, and inventory levels swelled.

AEO faces uneven sales, more markdowns, tougher tariff-refund comparisons and higher SG&A that could pressure margins.

Major indexes are moving lower for another session as focus remains on crude prices and inflation data

Key Takeaways American Eagle's Q2 EPS jumped 75.6%, helped by a $179 million tariff-refund benefit.Aerie revenues rose 24.9%, with comparable sales up 19% on broad-based channel and category strength.American Eagle expects mid-single-digit fiscal 2026 comp growth, with operating income of $540-$550 million. American Eagle Outfitters, Inc. (AEO - Free Report) posted second-quarter fiscal 2026 earnings of 79 cents per share, up 75.6% year over year and above the Zacks Consensus Estimate of 21 cents by 276.2%. Net revenues rose 7.5% to $1.38 billion and beat the consensus mark of $1.37 billion by 1%.

The earnings beat was aided by tariff-refund benefits, while Aerie and OFFLINE momentum supported sales growth. Consolidated comparable sales increased 6%, and American Eagle showed sequential improvement from the first quarter.

American Eagle’s shares have lost 8.5% in the past three months compared with the industry’s 17.3% decline.

AEO's Brand Sales Show Uneven MomentumAerie revenues increased 25% year over year to $535.8 million, while comparable sales advanced 19%. Management cited broad-based strength across channels and categories, including core apparel, intimates and activewear. OFFLINE also benefited from demand for Cloud Fleece, sports bras and bottoms.

American Eagle brand revenues rose 0.7% to $805.9 million, but comparable sales declined 1%. Men's delivered its fourth consecutive quarter of positive comps. Women's fashion bottoms and newer denim fits gained traction, though the company is still rebalancing older and seasonal inventory.

We had expected Aerie revenues to grow 19.4% year over year to $512.5 million, while AE revenues to dip 1% to $792.1 million.

American Eagle's Margins Get Refund BoostGross profit climbed 34.4% year over year to $672.1 million, while gross margin expanded 980 basis points to 48.7%. A net $179 million tariff-refund benefit in gross profit contributed 1,300 basis points to the margin expansion. Merchandise margins deleveraged 330 basis points, with Aerie improvement offset by American Eagle markdowns.

Selling, general and administrative expenses increased 19% to $408.4 million and rose 290 basis points, as a percentage of sales, to 29.6%. The quarter included $18 million of tariff refund-related incentive compensation expense. The remaining increase primarily reflected planned advertising investments.

Operating income rose 105.1% year over year to $211.4 million, while operating margin increased 730 basis points to 15.3%. The quarter included a $161 million net operating income benefit from tariff refunds.

American Eagle's Balance Sheet Shows Inventory BuildThis Zacks Rank #1 (Strong Buy) company ended the quarter with $148 million in cash and cash equivalents. Total liquidity, including the revolver, was $783 million. Merchandise inventory was $817.9 million, up 13.9% year over year, while units increased 9%.

Capital expenditures were $66 million in the quarter. The company also returned $21 million to shareholders through its quarterly cash dividend of 12.5 cents per share.

AEO's Q3 Guide Points to Continued Aerie GrowthFor the fiscal third quarter, AEO expects comparable sales growth in the mid-to-high single digits. Management sees Aerie and OFFLINE comps in the high teens to 20% range, while American Eagle is expected to be approximately flat.

Gross margin is projected to be roughly flat year over year, with SG&A expenses rising in the high-single digits. Operating income is forecast between $110 million and $115 million.

American Eagle's Fiscal 2026 Outlook Includes RefundsFor fiscal 2026, the company expects comparable sales to increase in the mid-single digits and gross margin to rise year over year. SG&A expenses are projected to grow in the low-double digits, while depreciation and amortization is expected to be about $215 million.

Operating income is forecast between $540 million and $550 million, inclusive of tariff-refund benefits, with a weighted average share count in the low 170 million range. Capital expenditures are expected between $250 million and $260 million.

More Key Picks in RetailFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.

American Eagle Outfitters (NYSE:AEO) stock hit 11-month lows on Thursday after reporting quarterly financial results after Wednesday’s market closed.

Needham analyst Tom Nikic remains cautiously neutral, maintaining a Hold rating on the stock with no price target.

American Eagle: Mixed BagThe apparel company’s intimate line, Aerie, remains the highlight, Nikic said.

"AEO remains a tale of two brands, with Aerie remaining red-hot, but the larger American Eagle brand is still a bit of a mixed bag," Nikic said.

The analyst said the company will face tougher comparable sales in the second half of the fiscal year, alongside a "volatile macro environment."

"We remain in wait-and-see mode here,” he added.

Second-quarter results showed earnings per share beating estimates, with tariff refunds providing an estimated 50-cent-per-share benefit — a net gross of $179 million and a $161 million net operating income benefit.

But American Eagle’s earnings per share would still have beaten estimates without the refund. The company also beat analyst estimates for revenue.

Aerie is the Big PositiveNikic highlighted poor results from the women’s segment of the American Eagle brand, particularly with pants and shorts.

The positives in the quarter were the American Eagle brand men’s segment posting its fourth straight quarter of positive comps and the Aerie brand posting 19% comp growth year-over-year.

Nikic said the Pittsburgh-based company’s real test could be the upcoming Aerie comps in the third and fourth quarters.

"Aerie is one of the strongest growth stories in retail at the moment, but it faces difficult compares, and the outlook for the core American Eagle brand is unclear."

Price ActionAEO shares are down 13.2% to $14.64 on Thursday. The stock hit an intraday low of $14.14, nearing the 52-week low of $14.06 set back on Oct. 10.

The Jay Schottenstein-led company’s stock is down 44% year to date in 2026.

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Macy's and American Eagle both reported earnings within hours of each other, both got punished by the market, and yet only one of them belongs anywhere near a retirement portfolio. The reasons why will surprise you.

Two struggling apparel retailers reported within hours of each other, both got sold, and now retirement-focused investors have to answer a plain question: own Macy’s (NYSE:M | M Price Prediction) or American Eagle Outfitters (NYSE:AEO) here, or neither? Macy’s beat on the top and bottom line and raised full-year guidance. American Eagle beat headline EPS but missed on the metric that matters, comparable sales at its namesake brand. The market punished both, sending Macy’s down 3.65% intraday and American Eagle down 13.77%. That reaction is the whole story, and it tells you which name a conservative income investor should actually be looking at.

Quality of the Quarter: Macy’s, Decisively Macy’s put up adjusted EPS of $0.63 versus $0.36 consensus, its 10th consecutive EPS beat, on comparable sales up 2.7% across all three nameplates, a fifth straight quarter of positive comps. Bloomingdale’s comps rose 11.3%, Bluemercury 6.2%, and the Reimagine 200 stores 1.9%. Gross margin expanded 180 basis points to 41.5%. A $98 million IEEPA tariff refund flattered the numbers, with roughly $96 million being reinvested into the strategy rather than flowing through to the bottom line.

American Eagle’s reported $0.79 EPS versus $0.21 consensus flatters a weaker underlying quarter. The number was inflated by a $161 million net tariff refund benefit included in operating profit. Strip that out and the underlying story is that revenue beat by only 0.89%, the American Eagle brand posted a 1% comparable sales decline, merchandise margins deleveraged 330 basis points, and inventory rose 14%. Aerie and OFFLINE remain excellent, with 25% revenue growth and 19% comps, but the flagship brand is shrinking. Winner: Macy’s.

Yield and Income Durability: Macy’s Again Macy’s pays a quarterly dividend of $0.1915, following a 5% increase earlier in FY2026, for a trailing yield of roughly 3.29%. It backs the payout with $1.43 billion of operating cash flow and $797 million of free cash flow in FY2026, plus roughly $1.0 billion remaining under its $2.0 billion buyback authorization. American Eagle pays $0.125 quarterly, a 2.9% yield, with a much smaller cash cushion of $148 million at quarter-end. For a retiree, Macy’s offers a bigger yield, a recent hike, and a coverage profile supported by cash flow across all three nameplates rather than a single growth engine. Winner: Macy’s.

Valuation Versus Own History: American Eagle This is the only dimension American Eagle wins, and it wins on pain. AEO trades at 11x trailing and 12x forward earnings after falling 43.7% year-to-date and 37.8% over five years. Its 50-day moving average of $17.03 sits well above the current $14.57. Analysts still carry a $19.55 target, but the rating skew is 11 holds, one buy, and a strong sell. Macy’s, at 9x trailing and 10x forward, is optically cheaper on multiple, but it’s actually up 24.98% over one year and has clawed back to only 4.19% below year-end. AEO is more washed out relative to its own trend. Winner: American Eagle, on price alone.

Verdict: Macy’s for the Retiree, AEO for the Contrarian, Neither on Autopilot For a retirement-focused investor, Macy’s screens as the stronger candidate. It offers the higher yield, a recently raised payout, real free cash flow, no debt maturities until 2030, and a business where every nameplate is comping positive. The Bold New Chapter strategy cited by management is producing measurable results across the store base. AEO is a trade for someone who believes Aerie can carry a shrinking American Eagle brand through a tariff-heavy back half at assumed 15% H2 rates, with markdowns already baked into third-quarter guidance. That profile fits a speculative trade rather than a retirement allocation. Macy’s screens better on income durability, while AEO’s yield carries meaningfully more risk (the same set of red flags we cataloged in a free guide to dividend traps).

Contact [email protected] for any questions or corrections.

Stock futures are losing ground ahead of the release of key inflation data and tech earnings reports; crude oil prices and Treasury yields are each rising further thanks to persistent worries about the Iran war and inflation; the Producer Price Index is expected to show an acceleration in wholesale price inflation; Oracle and Adobe are set to report earnings this afternoon; and American Eagle shares are tumbling after a disappointing quarterly report. Here’s what you need to know today.

Stock Futures Slip After 3 Straight Losing Sessions
Stock futures are lower this morning as investors await important economic data and corporate earnings reports. Futures tied to the tech-heavy Nasdaq and the benchmark S&P 500 were recently down 0.7% and 0.2%, respectively, while Dow Jones Industrial Average futures hovered near unchanged. All three indexes closed lower yesterday, losing ground for the third consecutive session, as oil prices and bond yields rose. The yield on the 10-year Treasury was at 4.88% recently, up from yesterday’s close of 4.84% and trading at its highest level in nearly three years. WTI crude oil futures, the U.S. benchmark, were up more than 3% at nearly $99 per barrel, their highest level since May. Gold futures were down 1% at $4,415 an ounce, while bitcoin traded at $77,800, down from yesterday’s high of $79,700.

Oil Prices, Bond Yields Continue Surging
The recent slump for U.S. stocks has coincided with a rise in oil prices and bond yields, both of which extended their increases this morning. Brent crude oil futures, the global oil benchmark, were up 2% at $103 per barrel recently, their highest point since May. Attacks across the Middle East in recent days have reignited fears about the stability of the global oil supply chain. President Trump told reporters yesterday that he thinks oil prices will come down after the midterm elections in November, saying Iran is “desperate to try and affect the election” by hurting Republicans with high prices.1 Treasury yields, meanwhile, surged yesterday after the Treasury Department announced it would purchase $6 billion in long-term bonds today, triple the size of recent buybacks. Yields on the 10-year Treasury, which are at their highest levels since October 2023, have a direct impact on interest rates charged on all sorts of consumer loans.

Key Inflation Data Comes Ahead of Fed Meeting
Investors will get the first of two big inflation reports this morning, with the Producer Price Index for August set to be released at 8:30 a.m. ET, ahead of tomorrow’s Consumer Price Index report. Economists expect the PPI to show that wholesale prices rose 5.3% in the 12 months ending in August, up from 4.7% in July.2 Businesses are facing record high diesel prices in much of the country after the recent surge in oil prices, along with the recent escalation of tariffs between the U.S. and Canada. This week’s inflation reports are the last key pieces of data ahead of the Federal Reserve’s policy meeting next week. Market participants are pricing in a likelihood that the Fed will raise its benchmark interest rate as inflation remains well above the central bank’s target.3

Oracle, Adobe Earnings Due This Afternoon
Tech investors are bracing for the latest results from cloud computing giant Oracle (ORCL). The company is expected to report fiscal first-quarter revenue of $19.06 billion, up 28% year-over-year, along with adjusted earnings of $1.74 per share, up from $1.47 a year ago. Oracle shares have lost about half their value since hitting a record high a year ago, as concerns about the pace and sustainability of its data center buildout and its reliance on a few major customers such as OpenAI have weighed on investor sentiment. Photoshop maker Adobe (ADBE) is also set to report fiscal third quarter results this afternoon, days after announcing that president of customer experience orchestration Anil Chakravarthy will become CEO at the start of December.4 Oracle and Adobe shares were down about 1% in recent premarket trading.

American Eagle Stock Drops on Disappointing Sales
Shares of American Eagle Outfitters (AEO) are tumbling this morning after the clothing retailer posted second-quarter results. The company said that comparable sales growth came in at 6%, short of the 6.6% analysts had been expecting. American Eagle lifted its full-year operating profit forecast to $540 million-$550 million, but Wall Street may have been looking for a bigger bump after the company recorded a benefit of nearly $200 million in tariff refunds in the quarter. Earnings for the second quarter came in at 79 cents per share, more than triple what analysts had expected, while revenue of $1.38 billion narrowly topped estimates.5 Shares were down 15% ahead of the opening bell.

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American Eagle Outfitters' (AEO.N) shares slumped over 11% in premarket trading on Thursday, following a flat quarterly gross-margin forecast as ​persistent softness at the company's core brands outweighed a ‌second-quarter revenue beat.

Demand across the apparel sector has been uneven as consumers grappling with inflation prioritize essentials and wait for promotions — a backdrop ​contributing to a roughly 36% decline in the company's ​shares this year.

Executives said on Wednesday that the brand ⁠was still trying to clear older inventory through discounts after ​a sharp shift in fashion trends left some merchandise out of ​step with consumer demand.

Inventory costs climbed 14% from a year earlier in the quarter ended August 1, including costs related to incremental tariffs.

"Earnings power ​is unlikely to improve and low valuation remains justified by ​several overhangs, including elevated inventory levels and Aerie's ability to sustain recent ‌momentum," ⁠said analysts at Morgan Stanley.

Revenue for the second quarter surpassed analysts' estimates, as growth at Aerie — the company's women's intimates and activewear brand — helped offset softness at the namesake brand.

The company ​expects current-quarter gross ​margin to be ⁠flat from a year earlier and forecasts mid-single digit growth in fiscal 2026 comparable sales.

The stock's ​forward price-to-earnings multiple, a common benchmark for valuing ​stocks, is ⁠9.38, compared to peers Abercrombie's (ANF.N) 11.47 and Gap's (GAP.N) 8.91.

American Eagle, like several apparel peers, has turned to celebrity partnerships such as ⁠the "Great Jeans" ​campaign with actor Sydney Sweeney to ​capture spending from wealthier Gen Z consumers, even as inflation squeezes lower- and ​middle-income households.

Victoria’s Secret’s Comeback Is Real—The Stock’s Problem Is DifferentAmerican Eagle Outfitters NYSE: AEO reported second-quarter revenue and operating income at the high end of its expectations, aided by continued rapid growth at its Aerie and OFFLINE businesses and a substantial benefit from tariff refunds.

Consolidated revenue rose 8% year over year to $1.4 billion, while comparable sales increased 6%. Operating income reached $211 million, compared with $103 million a year earlier. The result included a net $161 million benefit from tariff refunds, the company said.

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Abercrombie’s Comeback Is a Work in ProgressExecutive Chairman and Chief Executive Officer Jay Schottenstein said the quarter represented “another important step forward” for the retailer. He pointed to progress at the American Eagle banner and what he described as outstanding performance at Aerie.

Aerie Leads Growth Aerie, including the OFFLINE activewear business, generated $536 million in revenue, a 25% increase from the prior year. Comparable sales climbed 19%, with growth across channels and product categories.

MarketBeat Week in Review – 06/15 - 06/19Jen Foyle, president and executive creative director for American Eagle and Aerie, said demand was broad-based across core apparel, intimates and activewear. She highlighted customer response to tees, tanks, fleece, bottoms, sleep-to-street products and seasonal assortments, as well as OFFLINE’s Cloud Fleece franchise and sports bras.

Foyle said Aerie’s core intimates business remained strong, supported by its focus on comfort and fabrication. The brand introduced its Float bra collection in July, which she said complements Aerie’s structured bra assortment. The company also nearly doubled the size of its Advocate program during the quarter as it sought to expand customer engagement.

Management said Aerie entered the third quarter maintaining momentum against more difficult comparisons. The company expects Aerie and OFFLINE comparable-sales growth in the high-teens to 20% range during the third quarter.

Foyle said Aerie has room to expand awareness, noting that the brand’s awareness level was about 59%, compared with roughly 76% for American Eagle. She said the company is using store events, digital spending, Aerie Realmakers and its advocacy program to build the customer community.

American Eagle Improves, but Inventory Work Continues American Eagle revenue increased 1% during the second quarter, while comparable sales declined 1%. The result marked a sequential improvement from the first quarter, according to management.

The men’s business posted its fourth consecutive quarter of positive comparable sales, driven by strength across bottoms categories. In women’s, the company cited favorable response to outfitting strategies, including tiny tops paired with oversized bottoms, as well as cargo styles and fashion bottoms.

Foyle said new denim fits, including wide-leg, straight and low-rise styles, gained customer acceptance. She said the retailer had pivoted its denim offering toward working fits, particularly low-rise styles, but continues to rebalance inventory in older fits.

Management said remaining American Eagle inventory cleanup is primarily concentrated in seasonal merchandise, particularly shorts, along with some fashion products. The company expects some markdown pressure at the banner to continue in the third quarter as it works through that inventory.

For the third quarter, American Eagle expects comparable sales to be approximately flat. Mike Mathias, the company’s strategic advisor, said stores remain below the banner’s overall trend, while digital performance has been stronger. However, store performance has improved so far in the third quarter, particularly during the back-to-school period.

The company has spent the past four quarters investing in brand awareness and now plans to shift more marketing dollars toward conversion-oriented tactics. Management said traffic, store conversion and product strategies will be key measures as it works to return American Eagle to sustained growth.

Margins Reflect Tariff Refunds and Brand Differences Gross profit increased 34% to $672 million, and gross margin expanded 980 basis points to 48.7%. The company said tariff refunds produced a $179 million gross-profit benefit and accounted for 1,300 basis points of gross-margin expansion.

Merchandise margins declined 330 basis points, as improvement at Aerie was offset by markdowns at American Eagle. Selling, general and administrative expense rose 19% to 29.6% of sales, including $18 million of incentive expense tied to tariff refunds. The remaining increase primarily reflected planned advertising investments.

Second-quarter earnings per share were $0.79. Inventory cost increased 14%, while inventory units rose 9%. Capital expenditures totaled $66 million during the quarter. The company returned $21 million to shareholders through its quarterly dividend. American Eagle ended the quarter with approximately $148 million in cash and investments and total liquidity of $783 million, including its revolver. Outlook and Leadership Transition For the third quarter, the company expects consolidated comparable-sales growth in the mid- to high-single digits and operating income of $110 million to $115 million. Gross margin is expected to be similar to the prior year, while SG&A expense is projected to increase in the high-single digits.

For the full year, American Eagle forecast operating income of $540 million to $550 million, based on consolidated comparable-sales growth in the mid-single digits. The company expects full-year gross margin to increase year over year.

Mathias said the updated outlook reflects a flatter sales expectation for American Eagle in the second half than previously anticipated, along with markdown provisions for inventory rebalancing. Aerie is expected to remain a major growth contributor.

The call also marked the transition of the chief financial officer role to Ravi Thanawala, who said he had spent his first weeks at the company listening and learning about the business. Thanawala said his priorities include connecting brand growth with disciplined execution, stronger profitability and thoughtful resource allocation. Mathias, who reviewed the quarter’s financial results and outlook, will continue as a strategic advisor.

About American Eagle Outfitters (NYSE:AEO)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.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended July 2026, American Eagle Outfitters (AEO - Free Report) reported revenue of $1.38 billion, up 7.5% over the same period last year. EPS came in at $0.79, compared to $0.45 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.37 billion, representing a surprise of +0.99%. The company delivered an EPS surprise of +276.19%, with the consensus EPS estimate being $0.21.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how American Eagle performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Number of stores - AE Brand: 802 versus the four-analyst average estimate of 801.Number of stores - Total (EOP): 1,167 versus 1,181 estimated by four analysts on average.Number of stores - Aerie stand-alone (incl. OFFL/NE): 335 versus 348 estimated by four analysts on average.Comparable store sales: 6% versus 6.7% estimated by three analysts on average.Comparable store sales - American Eagle Outfitters: -1% versus -0.7% estimated by three analysts on average.Gross square footage - Total: 7.26 Msq ft versus the three-analyst average estimate of 7.30 Msq ft.Comparable store sales - Aerie: 19% versus the three-analyst average estimate of 19.6%.Number of stores - Unsubscribed: 7 versus 8 estimated by two analysts on average.Number of stores - Todd Snyder: 23 compared to the 23 average estimate based on two analysts.Total net revenue- Aerie: $535.82 million versus the four-analyst average estimate of $524.35 million. The reported number represents a year-over-year change of +24.9%.Total net revenue- American Eagle: $805.88 million versus $794.27 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.7% change.Total net revenue- Other: $38.67 million versus the three-analyst average estimate of $44.52 million.View all Key Company Metrics for American Eagle here>>>

Shares of American Eagle have returned -0.8% over the past month versus the Zacks S&P 500 composite's -1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

PITTSBURGH--(BUSINESS WIRE)--American Eagle Outfitters, Inc. (NYSE: AEO) today announced financial results for the second quarter ended August 1, 2026. “The second quarter reflects the value of our AEO Inc. portfolio, led by the broad-based momentum of Aerie and OFFLINE, alongside encouraging progress at American Eagle. We continue to expand Aerie's reach and deepen brand awareness, leveraging authentic connections to attract new customers and fuel engagement. AE saw sequential improvement from.

American Eagle Outfitters Inc. (NYSE:AEO) posted its fiscal 2027 second-quarter results after Wednesday’s closing bell, beating estimates on the top and bottom lines, due in part to a large tariff refund. Here’s a look at the details inside the report. 

AEO stock is moving. Watch the price action here. American Eagle Q2 Details       American Eagle Outfitters reported quarterly earnings of 79 cents per share, which beat the consensus estimate of 21 cents, per Benzinga Pro data. 

Quarterly revenue of $1.38 billion came in just above the analyst estimate of $1.37 billion. Consolidated inventory at cost was up 14%, with units up 9%. Total comparable sales were up 6%, and Aerie and OFFLINE total revenue grew 25%.

The company reported tariff refunds of $196 million with a net operating income contribution of $161 million for the second quarter of 2026.

“The second quarter reflects the value of our AEO Inc. portfolio, led by the broad-based momentum of Aerie and OFFLINE, alongside encouraging progress at American Eagle,” said Jay Schottenstein, CEO of AEO, Inc.

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Looking AheadAmerican Eagle Outfitters expects third-quarter and fiscal-year comparable sales to grow by mid-single digits.

AEO Stock Price: According to data from Benzinga Pro, American Eagle stock was down 11.78% to $14.98 in Wednesday’s extended trading.  

Photo: Shutterstock

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American Eagle Outfitters, Inc. (NYSE:AEO) will release earnings for its second quarter after the closing bell on Wednesday, Sept. 9.

Analysts expect the company to report quarterly earnings of 22 cents per share, down from 45 cents per share in the year-ago period. The consensus estimate for American Eagle’s quarterly revenue is $1.37 billion. It reported $1.28 billion last year, according to Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and in six of the past 10 quarters overall.

With the recent buzz around American Eagle, some investors may be eyeing potential gains from the company’s dividends too. As of now, AEO has an annual dividend yield of 2.90%, which is a quarterly dividend amount of 12.5 cents per share (50 cents a year).

To figure out how to earn $500 monthly from American Eagle, we start with the yearly target of $6,000 ($500 x 12 months).

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Next, we take this amount and divide it by AEO’s $0.50 dividend: $6,000 / $0.50 = 12,000 shares.

So, an investor would need to own $206,640 worth of American Eagle, or 12,000 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.50 = 2,400 shares, or $41,328 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

AEO Price Action: Shares of American Eagle fell 1% to close at $17.22 on Tuesday.

Photo via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is American Eagle Outfitters (AEO - Free Report) . AEO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that AEO has a P/B ratio of 2.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.59. AEO's P/B has been as high as 2.54 and as low as 1.05, with a median of 1.48, over the past year.

Finally, our model also underscores that AEO has a P/CF ratio of 7.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AEO's P/CF compares to its industry's average P/CF of 12.45. Over the past year, AEO's P/CF has been as high as 9.27 and as low as 3.36, with a median of 5.12.

These are only a few of the key metrics included in American Eagle Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AEO looks like an impressive value stock at the moment.

American Eagle Outfitters (AEO - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 9. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis teen clothing retailer is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -53.3%.

Revenues are expected to be $1.37 billion, up 6.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for American Eagle?For American Eagle, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.00%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that American Eagle will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that American Eagle would post earnings of $0.11 per share when it actually produced earnings of $0.14, delivering a surprise of +27.27%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

American Eagle doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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