American Eagle Outfitters (AEO) Flagged As A Storm The Castle Stock
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified American Eagle Outfitters as such a stock due to the following factors:
- AEO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.6 million.
- AEO has traded 5.6 million shares today.
- AEO is trading at 7.34 times the normal volume for the stock at this time of day.
- AEO crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on AEO:
American Eagle Outfitters, Inc. operates as a retailer of apparel and accessories in the United States and internationally. The stock currently has a dividend yield of 3.3%. AEO has a PE ratio of 21. Currently there are 9 analysts that rate American Eagle Outfitters a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for American Eagle Outfitters has been 5.6 million shares per day over the past 30 days. American Eagle Outfitters has a market cap of $3.0 billion and is part of the services sector and retail industry. The stock has a beta of 1.24 and a short float of 24.6% with 9.67 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates American Eagle Outfitters as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- AEO's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 12.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- AMERN EAGLE OUTFITTERS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, AMERN EAGLE OUTFITTERS INC increased its bottom line by earning $0.46 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $0.46).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 472.2% when compared to the same quarter one year prior, rising from $5.81 million to $33.26 million.
- You can view the full American Eagle Outfitters Ratings Report.
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