Zacks Research Upgrades American Eagle Outfitters (NYSE:AEO) to “Strong-Buy”

Posted by Geri Gentry on Sep 11th, 2026

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

A number of other equities research analysts have also weighed in on the stock. Barclays set a $15.00 price target on shares of American Eagle Outfitters in a report on Thursday. William Blair reissued a “buy” rating on shares of American Eagle Outfitters in a research report on Wednesday, July 15th. Morgan Stanley decreased their price objective on shares of American Eagle Outfitters from $18.00 to $17.00 and set an “equal weight” rating for the company in a research report on Thursday. Bank of America restated an “underperform” rating and set a $16.00 target price on shares of American Eagle Outfitters in a research note on Friday, August 14th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $19.36.

Read Our Latest Stock Analysis on AEO

American Eagle Outfitters Stock Down 13.9%

NYSE AEO opened at $14.53 on Wednesday. The company has a quick ratio of 0.53, a current ratio of 1.55 and a debt-to-equity ratio of 0.05. American Eagle Outfitters has a fifty-two week low of $14.06 and a fifty-two week high of $28.46. The business has a 50 day moving average price of $16.97 and a two-hundred day moving average price of $17.55. The stock has a market cap of $2.44 billion, a PE ratio of 7.42, a P/E/G ratio of 3.69 and a beta of 1.33.

American Eagle Outfitters (NYSE:AEO – Get Free Report) last posted its quarterly earnings data on Wednesday, September 9th. The apparel retailer reported $0.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.57. American Eagle Outfitters had a net margin of 5.91% and a return on equity of 24.02%. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same quarter last year, the firm posted $0.45 earnings per share. The business’s quarterly revenue was up 7.5% on a year-over-year basis. As a group, sell-side analysts predict that American Eagle Outfitters will post 1.76 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Cary D. Mcmillan sold 2,892 shares of the company’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.77, for a total value of $48,498.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Noel Spiegel sold 2,892 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $16.78, for a total transaction of $48,527.76. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 11,563 shares of company stock worth $196,599. Insiders own 8.95% of the company’s stock.

Institutional Investors Weigh In On American Eagle Outfitters

Institutional investors have recently modified their holdings of the stock. Kemnay Advisory Services Inc. bought a new position in shares of American Eagle Outfitters during the fourth quarter worth about $31,000. Aster Capital Management DIFC Ltd acquired a new position in American Eagle Outfitters in the fourth quarter worth about $32,000. Plato Investment Management Ltd bought a new stake in American Eagle Outfitters in the second quarter valued at about $25,000. Quadrant Capital Group LLC increased its holdings in American Eagle Outfitters by 31.8% in the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer’s stock valued at $49,000 after buying an additional 447 shares during the last quarter. Finally, Allworth Financial LP acquired a new stake in American Eagle Outfitters during the second quarter valued at approximately $36,000. Institutional investors and hedge funds own 97.33% of the company’s stock.

American Eagle Outfitters News Roundup

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

(Get Free Report)

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

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.