American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.

American Eagle Outfitters, Inc.

The following are the top rated Consumer Discretionary stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
VIPSHOP HOLDINGS LTD - ADR (VIPS) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Vipshop Holdings Ltd is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company's segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of VIPSHOP HOLDINGS LTD - ADR
AMERICAN EAGLE OUTFITTERS INC (AEO) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: American Eagle Outfitters, Inc. is a global specialty retailer. The Company offers clothing, accessories and personal care products under its American Eagle and Aerie brands. The Company operates through two segments: American Eagle and Aerie. American Eagle is an American jeans and apparel brand. Aerie is a lifestyle brand offering intimates, apparel, activewear, and swim collections. OFFLINE by Aerie offers a complete collection of activewear and accessories. The Company sells its products directly to consumers through its retail channel, which includes its stores and concession-based shops-within-shops. It operates stores in the United States, Canada, Mexico, and Hong Kong. The Company has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, including India, Europe, Latin America, and the Middle East. The Company also operates Todd Snyder New York (Todd Snyder), a premium menswear brand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of AMERICAN EAGLE OUTFITTERS INC
MERITAGE HOMES CORP (MTH) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Meritage Homes Corporation is a designer and builder of single-family attached and detached homes. The Companys segments include homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. It has operations in three regions: West, Central and East, which are comprised of 12 states: Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. These three regions are its principal homebuilding segments. The financial services segment offers title and escrow, mortgage, and insurance services. Its financial services operations also provide mortgage services to its homebuyers through an unconsolidated joint venture. The Companys homebuilding activities are conducted under the name of Meritage Homes in each of its homebuilding markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MERITAGE HOMES CORP
CAVCO INDUSTRIES INC (CVCO) is a mid-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cavco Industries, Inc. is a producer of manufactured homes in the United States. The Company designs and produces factory-built homes primarily distributed through a network of independent and Company-owned retailers, planned community operators and residential developers. Its segments include Factory-built Housing and Financial Services. The Factory-built Housing segment includes wholesale and retail factory-built housing operations. The Financial Services segment includes manufactured housing consumer finance and insurance. Its products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. The Company also produces park model recreational vehicles (RVs), vacation cabins and factory-built commercial structures. CountryPlace Acceptance Corp. is its finance subsidiary and Standard Casualty Co. is its insurance subsidiary.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CAVCO INDUSTRIES INC
DORMAN PRODUCTS INC (DORM) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dorman Products, Inc. is a supplier of replacement and upgrade parts in the motor vehicle aftermarket industry, serving passenger cars, light, medium, and heavy-duty trucks, as well as specialty vehicles, including utility terrain vehicles and all-terrain vehicles. Its segments include Light Duty, Heavy Duty, and Specialty Vehicle. The Light Duty segment designs and markets replacement parts and fasteners primarily for passenger cars and light trucks with sales to retailers and wholesale distributors who primarily serve passenger car and light truck customers. The Heavy Duty segment designs and markets replacement parts primarily for medium and heavy trucks with sales to independent distributors, independent component specialists and rebuilders, and auto parts stores that focus on the heavy-duty market. Specialty Vehicle segment designs, markets, and manufactures aftermarket parts and accessories for the powersports market with sales through direct-to-consumer, dealers, and installers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DORMAN PRODUCTS INC
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 7/15/2025

Note: Tapestry’s FY’24 ended on June 29, 2024.
Luxury fashion house Tapestry (NYSE: TPR) has surged 27% year-to-date, handily beating the S&P 500’s 2% return and outpacing peer Ralph Lauren’s (NYSE: RL) 15% rise. Its momentum is fueled by strong Q3 earnings, standout performance at Coach, and an upward revision to its full-year FY2025 guidance. Management lifted both revenue and EPS targets, citing improving gross margins and traction with younger consumers. See Buy or Sell Tapestry Stock?
Despite this bullish backdrop, TPR stock looks fully priced and possibly overvalued. Trading around $83, it offers limited upside when weighed against the company’s middling long-term fundamentals and past downturn vulnerability. Our analysis – spanning growth, profitability, financial stability, and downturn resilience—paints a mixed picture that ultimately leaves TPR stock looking unattractive. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
Photo by 1139623 on Pixabay
Tapestry’s Valuation: Reasonable, But Not Compelling
Tapestry may appear modestly valued at first glance, with a price-to-sales ratio of 2.4, a price-to-free cash flow of 18.2, and a price-to-earnings of 21.7—all below the S&P 500 averages. But this discount is less a hidden opportunity and more a reflection of the company’s sluggish growth and merely average profitability.
Tapestry’s revenue has been particularly underwhelming. Tapestry’s three-year compound annual growth rate is just 1.0%, far behind the S&P 500’s 5.5%. While revenue rose 2.7% over the past year to $6.9 billion and Q3 2025 posted an 8% year-over-year gain—beating the S&P’s 4.8%—the longer-term trajectory remains weak for a brand aspiring to premium global status.
Profitability metrics tell a similar story. The company’s 17.9% operating margin is decent, and its 12.5% net income margin edges out the S&P’s 11.6%. Its 14.9% operating cash flow margin matches the benchmark. These are solid, middle-of-the-pack numbers—but not the kind that support a case for multiple expansion.
Financial Stability: Solid Balance Sheet
On a positive note, Tapestry maintains a solid financial foundation, with $4.1 billion in debt against a $17 billion market cap—resulting in a manageable debt-to-equity ratio of 25.3% and a healthy 14.5% cash-to-assets ratio. This financial strength gives the company room to invest, return capital, or navigate short-term headwinds.
Downturn Resilience: A Serious Red Flag
This is where Tapestry’s story takes a clear hit: the stock has consistently underperformed the S&P 500 during major downturns. It dropped 46% during the 2022 inflation shock (vs. the index’s 25% decline), plunged 64% in the 2020 COVID crash (vs. 34%), and sank 78% in the 2008 financial crisis (vs. 57%). While it eventually rebounded each time, the deeper drawdowns highlight a troubling level of volatility, especially concerning in today’s uncertain economic environment. Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
Bottom Line
In summary, Tapestry scores neutral on growth and profitability, strong on financial stability, but very weak on downturn resilience, leaving its overall profile uninspiring. Despite recent gains and a seemingly fair valuation, the stock’s lackluster fundamentals and poor performance in past market shocks make it a risky bet.
While you would do well to avoid TPR stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
Invest with Trefis Market-Beating Portfolios
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After a 27% Surge, Is Tapestry Stock Still Worth Buying?

Investors in American Eagle Outfitters, Inc. (Symbol: AEO) saw new options become available today, for the February 2026 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 247 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AEO options chain for the new February 2026 contracts and identified the following put contract of particular interest.
The put contract at the $8.00 strike price has a current bid of 85 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $8.00, but will also collect the premium, putting the cost basis of the shares at $7.15 (before broker commissions). To an investor already interested in purchasing shares of AEO, that could represent an attractive alternative to paying $9.72/share today.
Because the $8.00 strike represents an approximate 18% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 74%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 10.62% return on the cash commitment, or 15.70% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Eagle Outfitters, Inc., and highlighting in green where the $8.00 strike is located relative to that history:
The implied volatility in the put contract example above is 58%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $9.72) to be 53%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Puts of the S&P 500 »
Also see:
RUTH Price Target
SIDU market cap history
ESRT Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AEO February 2026 Options Begin Trading

The following are the top rated Consumer Discretionary stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
VIPSHOP HOLDINGS LTD - ADR (VIPS) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Vipshop Holdings Ltd is an online discount retailer for brands in China. The Company offers branded products to consumers in China through flash sales mainly on its vip.com Website. The Company's segment is sales, product distribution and offering of goods on its online platforms. The Company conducts its business through its subsidiaries and consolidated affiliated entities in China. Through its flash sales model, the Company sells limited quantities of discounted branded products online for limited periods of time. The Company offers diversified product offerings from over 17,000 domestic and international brands, including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products. The Company offers a range of products and services for consumers through lefeng.com, specializing in branded cosmetics, apparel, healthcare products, food and other consumer products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
PASS
LONG-TERM EPS GROWTH:
PASS
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of VIPSHOP HOLDINGS LTD - ADR
VIPS Guru Analysis
VIPS Fundamental Analysis
MERITAGE HOMES CORP (MTH) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Meritage Homes Corporation is a designer and builder of single-family attached and detached homes. The CompanyGs segments include homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. It has operations in three regions: West, Central and East, which are comprised of 12 states: Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. These three regions are its principal homebuilding segments. The financial services segment offers title and escrow, mortgage, and insurance services. Its financial services operations also provide mortgage services to its homebuyers through an unconsolidated joint venture. The CompanyGs homebuilding activities are conducted under the name of Meritage Homes in each of its homebuilding markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
FAIL
LONG-TERM EPS GROWTH:
PASS
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of MERITAGE HOMES CORP
MTH Guru Analysis
MTH Fundamental Analysis
DR HORTON INC (DHI) is a large-cap value stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The CompanyGs segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The CompanyGs rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the CompanyGs homebuilding markets. It also conducts insurance-related operations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
FAIL
LONG-TERM EPS GROWTH:
PASS
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of DR HORTON INC
DHI Guru Analysis
DHI Fundamental Analysis
AMERICAN EAGLE OUTFITTERS INC (AEO) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: American Eagle Outfitters, Inc. is a global specialty retailer. The Company offers clothing, accessories and personal care products under its American Eagle and Aerie brands. The Company operates through two segments: American Eagle and Aerie. American Eagle is an American jeans and apparel brand. Aerie is a lifestyle brand offering intimates, apparel, activewear, and swim collections. OFFLINE by Aerie offers a complete collection of activewear and accessories. The Company sells its products directly to consumers through its retail channel, which includes its stores and concession-based shops-within-shops. It operates stores in the United States, Canada, Mexico, and Hong Kong. The Company has license agreements with third parties to operate American Eagle and Aerie stores and online marketplace businesses throughout Asia, including India, Europe, Latin America, and the Middle East. The Company also operates Todd Snyder New York (Todd Snyder), a premium menswear brand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
PASS
LONG-TERM EPS GROWTH:
FAIL
P/E RATIO:
PASS
PRICE/BOOK RATIO:
PASS
Detailed Analysis of AMERICAN EAGLE OUTFITTERS INC
AEO Guru Analysis
AEO Fundamental Analysis
SKECHERS USA INC (SKX) is a mid-cap growth stock in the Footwear industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Skechers U.S.A., Inc. designs, develops and markets a range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company's segments include Wholesale, and Direct-to-Consumer. Wholesale segment is comprised of sales to a network of partners, including Skechers-branded stores operated by third-party franchisees and licensees; family shoe stores, specialty athletic and sporting goods retailers, department stores and big box club stores; e-commerce retailers, and distributors in select international markets. Direct-to-Consumer segment comprises sales by the Company directly to consumers through a combination of channels, including Company-owned Skechers-branded stores; Company-owned e-commerce sites, and third-party marketplaces and digital platforms. Its collections are available in around 180 countries and territories, and 5,300 Skechers retail stores. Its lifestyle offering delivers comfort technologies such as Skechers Arch Fit and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
SALES:
PASS
CURRENT RATIO:
PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:
PASS
LONG-TERM EPS GROWTH:
PASS
P/E RATIO:
FAIL
PRICE/BOOK RATIO:
FAIL
Detailed Analysis of SKECHERS USA INC
SKX Guru Analysis
SKX Fundamental Analysis
Benjamin Graham Portfolio
Top Benjamin Graham Stocks
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© 2025, Nasdaq, Inc. All Rights Reserved.
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Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 6/17/2025

American Eagle Outfitters (AEO) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -16%. A quarter ago, it was expected that this teen clothing retailer would post earnings of $0.50 per share when it actually produced earnings of $0.54, delivering a surprise of 8%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
American Eagle, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $1.09 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $1.14 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Eagle shares have lost about 33.5% since the beginning of the year versus the S&P 500's gain of 0.1%.
What's Next for American Eagle?
While American Eagle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Eagle: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $1.24 billion in revenues for the coming quarter and $1.01 on $5.22 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, XCel Brands (XELB), has yet to report results for the quarter ended March 2025.
This brand management company is expected to post quarterly loss of $1.12 per share in its upcoming report, which represents a year-over-year change of -24.4%. The consensus EPS estimate for the quarter has been revised 66.7% lower over the last 30 days to the current level.
XCel Brands' revenues are expected to be $1.33 million, down 39% from the year-ago quarter.
Should You Invest in American Eagle Outfitters, Inc. (AEO)?
Before you invest in American Eagle Outfitters, Inc. (AEO), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Eagle Outfitters (AEO) Reports Q1 Loss, Misses Revenue Estimates

(RTTNews) - Below are the earnings highlights for American Eagle Outfitters Inc. (AEO):
Earnings: -$64.9 million in Q1 vs. $67.8 million in the same period last year. EPS: -$0.36 in Q1 vs. $0.34 in the same period last year. Excluding items, American Eagle Outfitters Inc. reported adjusted earnings of -$51.8 million or -$0.29 per share for the period.
Revenue: $1.089 billion in Q1 vs. $1.144 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

American Eagle Outfitters Inc. Q1 Earnings Summary

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Eagle Outfitters, Inc. (Symbol: AEO), where a total volume of 35,127 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.8% of AEO's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $10.50 strike put option expiring May 30, 2025, with 12,477 contracts trading so far today, representing approximately 1.2 million underlying shares of AEO. Below is a chart showing AEO's trailing twelve month trading history, with the $10.50 strike highlighted in orange:
Woodward, Inc. (Symbol: WWD) saw options trading volume of 2,065 contracts, representing approximately 206,500 underlying shares or approximately 44.2% of WWD's average daily trading volume over the past month, of 467,045 shares. Particularly high volume was seen for the $220 strike call option expiring July 18, 2025, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of WWD. Below is a chart showing WWD's trailing twelve month trading history, with the $220 strike highlighted in orange:
And BellRing Brands Inc (Symbol: BRBR) options are showing a volume of 11,795 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 44.1% of BRBR's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $80 strike call option expiring August 15, 2025, with 6,884 contracts trading so far today, representing approximately 688,400 underlying shares of BRBR. Below is a chart showing BRBR's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for AEO options, WWD options, or BRBR options, visit StockOptionsChannel.com.
Also see:
Stocks Being Sold By Hedge Funds
FPI Dividend Growth Rate
Top Ten Hedge Funds Holding NRSN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: AEO, WWD, BRBR

Guess Stock (NYSE: GES) is scheduled to release its fiscal first-quarter earnings on Thursday, May 29, 2025, with analysts projecting earnings of -69 cents per share on $631 million in revenue. This would compare to the prior year’s figures of -24 cents per share and $592 million in revenue. Historically, GES stock has increased 63% of the time following earnings announcements, with a median one-day rise of 10.3% and a maximum observed increase of 26%.
The company is seeing challenges in the Americas segment, elevated inventory levels, and heavy markdowns—all of which have weighed on the company’s profitability. Broader market volatility, fueled by tariff policies under the Trump administration, and escalating trade tensions, have further pressured the stock this year. While the company’s acquisition of Rag & Bone is helping boost revenue, profits have taken a sharp hit. Guess is reassessing its strategy in China, moving from direct operations toward a potential partnership with an experienced local firm. In North America, the company plans to close around 20 underperforming stores amid ongoing declines in foot traffic, part of a broader effort to streamline its retail footprint. The company has $574 Mil in current market capitalization. Revenue over the last twelve months was $3.0 Bil, and it was operationally profitable with $173 Mil in operating profits and net income of $60 Mil. Also see, Buy or Sell Guess Stock?
For event-driven traders, historical patterns may offer an edge, whether by positioning ahead of earnings or reacting to post-release moves. That said, if you seek upside with lower volatility than from individual stocks, the Trefis High Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks.
Image by Clau M from Pixabay
Guess’ Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
There are 19 earnings data points recorded over the last five years, with 12 positive and 7 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 63% of the time.
However, this percentage decreases to 55% if we consider data for the last 3 years instead of 5.
Median of the 12 positive returns = 10%, and median of the 7 negative returns = -5.2%
Additional data for observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
GES Correlation Between 1D, 5D and 21D Historical Returns
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have influence on post-earnings stock reaction. In fact, the pricing-in might begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Guess? stock compared with the stock performance of peers that reported earnings just before Guess?. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors.
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Q1 Results Move Guess Stock Up?

Bath & Body Works stock (NYSE: BBWI) is scheduled to release its fiscal first-quarter earnings on Thursday, May 29, 2025, with analysts projecting earnings of 47 cents per share on $1.42 billion in revenue. This would represent a 21% year-over-year increase in earnings and a 3% growth in sales compared to the prior year’s figures of 39 cents per share and $1.38 billion in revenue. Historically, BBWI stock has increased 60% of the time following earnings announcements, with a median one-day rise of 4.8% and a maximum observed increase of 25%.
In Q4 2024, the company reported a 4% decline in net sales and an 18% drop in earnings per diluted share, citing a shifted fiscal calendar and weakening consumer demand. Looking ahead, BBWI faces mounting pressure from U.S. tariffs on Chinese imports, alongside soft discretionary spending and growing competition from lower-cost private-label alternatives. Persistently high interest rates and economic uncertainty continue to erode consumer appetite for non-essential products like fragrances and candles. For 2025, the company’s guidance of 1-3% sales growth and an EPS range of $3.25-$3.60 reflects a stance of cautious optimism, with the midpoint indicating modest growth compared to the adjusted results of 2024. The company has $6.5 Bil in current market capitalization. Revenue over the last twelve months was $7.3 Bil, and it was operationally profitable with $1.3 Bil in operating profits and net income of $798 Mil.
For event-driven traders, historical patterns may offer an edge, whether by positioning ahead of earnings or reacting to post-release moves. That said, if you seek upside with lower volatility than from individual stocks, the Trefis High Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks.
Photo by AdoreBeautyNZ on Pixabay
BBWI’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
There are 20 earnings data points recorded over the last five years, with 12 positive and 8 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 60% of the time.
However, this percentage decreases to 50% if we consider data for the last 3 years instead of 5.
Median of the 12 positive returns = 4.8%, and median of the 8 negative returns = -6.8%
Additional data for observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
BBWI Correlation Between 1D, 5D and 21D Historical Returns
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have influence on post-earnings stock reaction. In fact, the pricing-in might begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Bath & Body Works stock compared with the stock performance of peers that reported earnings just before Bath & Body Works. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors.
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Will Bath & Body Works Stock React To Its Upcoming Earnings?

American Eagle Outfitters (NYSE: AEO) is scheduled to release its fiscal first-quarter earnings on Thursday, May 29, 2025, with analysts projecting an earnings loss of 22 cents per share on $1.09 billion in revenue. This compares to the prior year’s figures of 34 cents per share and $1.14 billion in revenue. Historically, AEO stock has declined 60% of the time following earnings announcements, with a median one-day drop of 5.4% and a maximum observed decline of 14%.
For the full year, AEO is expecting sales to decline by low single-digits. The company has $2.0 Bil in current market capitalization. Revenue over the last twelve months was $5.3 Bil, and it was operationally profitable with $445 Mil in operating profits and net income of $329 Mil. Also see Buy or Sell American Eagle Outfitters’ Stock?
For event-driven traders, historical patterns may offer an edge, whether by positioning ahead of earnings or reacting to post-release moves. That said, if you seek upside with lower volatility than from individual stocks, the Trefis High Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks.
Image by Pexels from Pixabay
American Eagle’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
There are 20 earnings data points recorded over the last five years, with 8 positive and 12 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 40% of the time.
However, this percentage decreases to 36% if we consider data for the last 3 years instead of 5.
Median of the 8 positive returns = 2.4%, and median of the 12 negative returns = -5.4%
Additional data for observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.
AEO Correlation Between 1D, 5D and 21D Historical Returns
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors.
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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American Eagle Outfitters, Inc.

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