American Eagle Outfitters (AEO): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

American Eagle Outfitters ( AEO) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole was unchanged today. By the end of trading, American Eagle Outfitters rose 48 cents (2.4%) to $20.37 on average volume. Throughout the day, 3.2 million shares of American Eagle Outfitters exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $19.94-$20.59 after having opened the day at $19.96 as compared to the previous trading day's close of $19.89. Other companies within the Retail industry that increased today were: China Jo-Jo Drugstores ( CJJD), up 9.5%, Tuesday Morning Corporation ( TUES), up 8.3%, China Nepstar Chain Drugstore ( NPD), up 6.5%, and ALCO Stores ( ALCS), up 5.6%.
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American Eagle Outfitters, Inc., together with its subsidiaries, operates as an apparel and accessories retailer in the United States and Canada. American Eagle Outfitters has a market cap of $4.09 billion and is part of the services sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate American Eagle Outfitters a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates American Eagle Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, dELiA*s ( DLIA), down 9.3%, RadioShack ( RSH), down 7.6%, Sears Holdings Corporation ( SHLD), down 6.4%, and GameStop ( GME), down 6.3%, were all laggards within the retail industry with TJX Companies ( TJX) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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