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

Posted by Stanley Muller on Sep 11th, 2026

Zacks Research upgraded shares of American Eagle Outfitters (NYSE:AEO – Free Report) from a hold rating to a strong-buy rating in a report issued on Wednesday morning,Zacks reports.

A number of other brokerages also recently issued reports on AEO. William Blair restated a “buy” rating on shares of American Eagle Outfitters in a research report on Wednesday, July 15th. Morgan Stanley lowered 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 note on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of American Eagle Outfitters in a report on Thursday, August 27th. UBS Group cut their price target on shares of American Eagle Outfitters from $31.00 to $27.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, The Goldman Sachs Group set a $22.00 price target on American Eagle Outfitters in a report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $19.36.

Check Out Our Latest Stock Report on American Eagle Outfitters

American Eagle Outfitters Stock Down 13.9%

Shares of AEO opened at $14.53 on Wednesday. American Eagle Outfitters has a 12 month low of $14.06 and a 12 month high of $28.46. The company has a current ratio of 1.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.05. The company has a market capitalization of $2.44 billion, a PE ratio of 7.42, a PEG ratio of 3.69 and a beta of 1.33. The stock’s 50-day moving average price is $16.97 and its two-hundred day moving average price is $17.55.

American Eagle Outfitters (NYSE:AEO – Get Free Report) last announced its earnings results on Wednesday, September 9th. The apparel retailer reported $0.79 EPS for the quarter, beating the consensus estimate 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 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 business posted $0.45 earnings per share. The firm’s revenue was up 7.5% on a year-over-year basis. On average, analysts anticipate that American Eagle Outfitters will post 1.76 EPS for the current year.

Insiders Place Their Bets

In other news, Director Noel Spiegel sold 2,892 shares of American Eagle Outfitters stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total value of $48,527.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director David M. Sable sold 5,779 shares of the business’s stock in a transaction on Friday, July 17th. The shares were sold at an average price of $17.23, for a total transaction of $99,572.17. Following the transaction, the director owned 53,481 shares in the company, valued at $921,477.63. The trade was a 9.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 11,563 shares of company stock worth $196,599. Corporate insiders own 8.95% of the company’s stock.

Institutional Investors Weigh In On American Eagle Outfitters

A number of large investors have recently bought and sold shares of the stock. Plato Investment Management Ltd bought a new stake in American Eagle Outfitters in the second quarter valued at $25,000. Kemnay Advisory Services Inc. bought a new position in shares of American Eagle Outfitters during the 4th quarter worth about $31,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of American Eagle Outfitters in the 4th quarter valued at about $32,000. Raymond James Financial Inc. acquired a new stake in shares of American Eagle Outfitters in the 2nd quarter valued at about $35,000. Finally, Allworth Financial LP bought a new stake in American Eagle Outfitters in the 2nd quarter valued at about $36,000. 97.33% of the stock is currently owned by institutional investors and hedge funds.

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

About American Eagle Outfitters

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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.