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 Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
RALPH LAUREN CORP (RL) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% 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: Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear and accessories, home, fragrances and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories include casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and more. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City, RL Restaurant located in Chicago, 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of RALPH LAUREN CORP
O'REILLY AUTOMOTIVE INC (ORLY) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Martin Zweig is 69% 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: OReilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States (U.S.), selling its products to both do-it-yourself (DIY) and professional service provider customers. Its stores carry various product lines, including new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting, oil, and wiper blades and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer services and programs, including battery diagnostic testing; battery, wiper, and bulb replacement; a loaner tool program; custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, used oil, oil filter, and battery recycling; 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
Detailed Analysis of O'REILLY AUTOMOTIVE INC
AMERICAN EAGLE OUTFITTERS INC (AEO) is a mid-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% 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
EBAY INC (EBAY) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 69% 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: eBay Inc. is a global commerce company. The Company's technology empowers buyers and sellers in more than 190 markets around the world. The Company's business includes its online marketplace located at www.ebay.com and its localized counterparts, its off-platform marketplaces and its suite of mobile apps. It provides a number of features for its sellers and buyers that align with its approach of leveraging technology, including generative AI, to enhance the marketplace experience for its customers. For sellers, the Company is focused on simplifying their business processes to help drive their sales. The Company offers the eBay International Shipping program for sellers in the United States. For buyers, it is changing the way they find inventory through discovery, personalization and other experiences. It launched Explore, an AI-powered shopping feed enabling users to browse a list of personalized recommendations based on their interests, style preferences, and sizes.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of EBAY INC
FLOOR & DECOR HOLDINGS INC (FND) is a mid-cap growth stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Martin Zweig is 69% 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: Floor & Decor Holdings, Inc. is a multi-channel specialty retailer and commercial flooring distributor. It primarily sells hard surface flooring and related accessories and is a seller of commercial surfaces. The Company operates 221 warehouse-format stores and five design studios across 36 states. The Company offers an assortment of in-stock hard-surface flooring, including tile, wood, laminate and vinyl, and natural stone, along with decorative accessories and wall tile, installation materials, and adjacent categories. The Company offers its products to various customers, including professional installers and commercial businesses (Pro) and homeowners, which are comprised of do-it-yourself customers (DIY) and buy it yourself customers who buy the products for professional installation (BIY). Its warehouse-format stores, which average approximately 78,000 square feet. The Companys subsidiary is Floor and Decor Outlets of America, Inc.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of FLOOR & DECOR HOLDINGS INC
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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 Martin Zweig - 10/28/2025

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
American Eagle Outfitters AEO: This company, which is a specialty retailer of casual apparel, accessories and footwear for men and women, has seen the Zacks Consensus Estimate for its current year earnings increasing 42.3% over the last 60 day.
American Eagle Outfitters, Inc. Price and Consensus
Capital One Financial COF: This company, which offers a wide range of financial products and services to consumers, small businesses, and commercial clients across the United States through its banking and non-banking subsidiaries, has seen the Zacks Consensus Estimate for its current year earnings increasing 13.4% over the last 60 days.
Capital One Financial Corporation Price and Consensus
General Motors GM: This company, which is one of the world’s largest automakers, has seen the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.
General Motors Company Price and Consensus
Crescent Energy Company CRGY: This independent oil and natural gas company which acquires, explores, develops, exploits and produces crude oil and natural gas properties, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.7% over the last 60 days.
Crescent Energy Company Price and Consensus
Pebblebrook Hotel Trust PEB: This internally managed hotel investment company which acquires and invests in hotel properties located primarily in large United States cities with an emphasis on the major coastal markets, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.
Pebblebrook Hotel Trust Price and Consensus
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

New Strong Buy Stocks for Oct. 27: AEO, COF, and More

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
AMERICAN EAGLE OUTFITTERS INC (AEO) is a mid-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of AMERICAN EAGLE OUTFITTERS INC
TJX COMPANIES INC (TJX) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% 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: The TJX Companies, Inc. is an off-price apparel and home fashions retailer in the United States (U.S.) and worldwide. The Company's segments include Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International, including Europe and Australia. The TJ Maxx and Marshalls chains sell family apparel, including footwear and accessories, home fashions, including home basics, decorative accessories, and giftware and other merchandise. The HomeGoods segment operates HomeGoods and Homesense chains. HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop, and cookware, as well as expanded pet and gourmet food departments. The TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada, offering a range of home decor, furniture, and seasonal home merchandise. The TJX International segment operates the TK Maxx and Homesense chains in Europe and the TK Maxx chain in Australia.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
Detailed Analysis of TJX COMPANIES INC
TOYOTA MOTOR CORP (ADR) (TM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Martin Zweig is 69% 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: Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. The Company operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by the Company and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
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 TOYOTA MOTOR CORP (ADR)
O'REILLY AUTOMOTIVE INC (ORLY) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Martin Zweig is 69% 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: OReilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States (U.S.), selling its products to both do-it-yourself (DIY) and professional service provider customers. Its stores carry various product lines, including new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting, oil, and wiper blades and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer services and programs, including battery diagnostic testing; battery, wiper, and bulb replacement; a loaner tool program; custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, used oil, oil filter, and battery recycling; 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
Detailed Analysis of O'REILLY AUTOMOTIVE INC
WYNDHAM HOTELS & RESORTS INC (WH) is a mid-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Martin Zweig is 62% 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: Wyndham Hotels & Resorts, Inc. is a hotel franchising company. The Company operates through one segment: Hotel Franchising. The Hotel Franchising segment consists of licensing its lodging brands and providing related services to third-party hotel owners and others. The Company operates approximately 9,300 hotels across over 95 countries on six continents. Through its network of approximately 903,000 rooms appealing to the everyday traveler. The Company operates a portfolio of 25 hotel brands, including Super 8, Days Inn, Ramada, Microtel, La Quinta, Baymont, Wingate, AmericInn, ECHO Suites, Registry Collection Hotels, Trademark Collection, and Wyndham.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
Detailed Analysis of WYNDHAM HOTELS & RESORTS INC
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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 Martin Zweig - 10/16/2025

Ignoring a government shutdown and lingering concerns about inflation, the broader equity markets have been hitting record highs lately. The shutdown, which has resulted in the furlough of several thousand federal employees, has not hindered the stock market’s upward momentum, as investors anticipate the disruption to be brief. Also, expectations of more interest rate cuts by the Fed in 2025 have increased due to weak labor market conditions.
Investors would like to take advantage of this northward movement of stocks by designing a portfolio to ensure healthy returns. However, with a plethora of stocks flooding the market at any point in time, it is by no means an easy task for individual investors to design a winning portfolio of stocks.
One way to move forward is to follow broker advice, as brokers are deemed experts in the field of investing, with thorough knowledge of the market's intricacies. Following this route, broker-friendly stocks like Bread Financial BFH, Delek US Holdings DK, American Eagle Outfitters AEO, Advance Auto Parts AAP and Archer Daniels Midland Company ADM should be monitored for healthy returns.
We have designed a screen to shortlist stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of broker information, it has been included. The price/sales ratio takes care of the company’s top line, making the strategy a well-rounded one.
Screening Parameters
# (Up- Down Rating)/ Total (4 weeks) =Top #75 (This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks).
% change in Q (1) est. (4 weeks) = Top #10 (This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter).
Price-to-Sales = Bot%10 (The lower the ratio, the better. Companies meeting this criterion are in the bottom 10% of our universe of over 7,700 stocks concerning this ratio).
Current Price greater than 5 (as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days (Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000 (This gives us stocks that are the top 3000 in terms of market capitalization).
Com/ADR/Canadian= Com (This eliminates the ADR and Canadian stocks).
Here are five of the 10 stocks that made it through the screen:
Bread Financial is based in Columbus, OH. The company continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
BFH outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. The average beat is 32%. Bread Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Delek US Holdings is a Brentwood, TN-based oil and gas refining and marketing company. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. DK beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once, the average beat being 16.1%.
American Eagle remains well placed on the back of cost-reduction efforts and brand progress. In addition, its Powering Profitable Growth plan bodes well. American Eagle is actively executing its strategic initiatives, aimed at driving long-term growth, enhancing operational efficiency and improving agility. The company has been investing in its digital platform to grow its e-commerce business and enrich customer experience.
American Eagle currently carries a Zacks Rank #3. DK beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once, the average beat being 16.1%.
Advance Auto achieved a key strategic milestone by completing its store footprint optimization program in March 2025. Over the next three years, it plans to open more than 100 new stores and expects to further accelerate growth. Its efforts to consolidate its supply chain into a single unified network bode well.
Advance Auto currently carries a Zacks Rank #3. AAP beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once.
Archer Daniels is based in Chicago, IL. This agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver.
This Zacks Rank #3 company has been progressing well on its three strategic pillars — optimize, drive and growth. ADM beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. The average beat is 0.05%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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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.

5 Broker-Friendly Stocks to Watch as Markets Move North Amid Shutdown

Looking at the universe of stocks we cover at Dividend Channel, on 10/10/25, Lennar Corp (Symbol: LEN), American Eagle Outfitters, Inc. (Symbol: AEO), and Darden Restaurants, Inc. (Symbol: DRI) will all trade ex-dividend for their respective upcoming dividends. Lennar Corp will pay its quarterly dividend of $0.50 on 10/27/25, American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.125 on 10/29/25, and Darden Restaurants, Inc. will pay its quarterly dividend of $1.50 on 11/3/25. As a percentage of LEN's recent stock price of $122.14, this dividend works out to approximately 0.41%, so look for shares of Lennar Corp to trade 0.41% lower — all else being equal — when LEN shares open for trading on 10/10/25. Similarly, investors should look for AEO to open 0.81% lower in price and for DRI to open 0.78% lower, all else being equal.
Below are dividend history charts for LEN, AEO, and DRI, showing historical dividends prior to the most recent ones declared.
Lennar Corp (Symbol: LEN):
American Eagle Outfitters, Inc. (Symbol: AEO):
Darden Restaurants, Inc. (Symbol: DRI):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.64% for Lennar Corp, 3.23% for American Eagle Outfitters, Inc., and 3.13% for Darden Restaurants, Inc..
Free Report: Top 8%+ Dividends (paid monthly)
In Wednesday trading, Lennar Corp shares are currently down about 3.4%, American Eagle Outfitters, Inc. shares are off about 1.8%, and Darden Restaurants, Inc. shares are down about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Lennar, American Eagle Outfitters and Darden Restaurants

Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of American Eagle Outfitters, Inc. (Symbol: AEO) were yielding above the 3% mark based on its quarterly dividend (annualized to $0.5), with the stock changing hands as low as $15.93 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. American Eagle Outfitters, Inc. (Symbol: AEO) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of American Eagle Outfitters, Inc., looking at the history chart for AEO below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
Also see:
ASB Stock Predictions
Top Ten Hedge Funds Holding MRRL
Funds Holding UNCY
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) Passes Through 3% Yield Mark

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
SHARKNINJA INC (SN) is a large-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Martin Zweig is 77% 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: SharkNinja, Inc. is a global product design and technology company, which offers lifestyle solutions to consumers around the world. Its diverse product portfolio spans over 36 household sub-categories, across cleaning, cooking, food preparation, and others, which include home environment and beauty. Its brands include Shark and Ninja. The Shark brand offerings cover handheld and robotic vacuums, as well as other floorcare products, including steam mops, wet/dry cleaning floor products and carpet extraction, beauty appliance and home environmental products. Ninja brand offers small kitchen appliances in the United States and its diversified product offering spans across consumers kitchens, both indoors and outdoors, with leading products in air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters, and others. Its products are sold at key retailers, online and offline, and through distributors around the world.
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.
CURRENT QUARTER EARNINGS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of SHARKNINJA INC
BURLINGTON STORES INC (BURL) is a large-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Martin Zweig is 77% 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: Burlington Stores, Inc. is an off-price retailer of branded merchandise at everyday low prices. The Companys stores offer an extensive selection of in-season, fashion-focused merchandise, including womens ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats. Its broad selection provides a wide range of apparel, accessories and furnishings for all ages. It sells a broad selection of merchandise acquired directly from manufacturers and other suppliers. It has six distribution centers. Its three east coast distribution centers are located in Edgewater Park, New Jersey; Burlington, New Jersey; and Logan, New Jersey. Its three west coast distribution centers are located in San Bernardino, California, Redlands, California, and Riverside, California. These six distribution centers occupy an aggregate of 5,135,000 square feet, and each includes processing, shipping and storage capabilities. It operates in about 1,108 stores.
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.
CURRENT QUARTER EARNINGS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of BURLINGTON STORES INC
FIVE BELOW INC (FIVE) is a mid-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 77% 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: Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
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 FIVE BELOW INC
ATOUR LIFESTYLE HOLDINGS LTD - ADR (ATAT) is a mid-cap growth stock in the Hotels & Motels industry. The rating according to our strategy based on Martin Zweig is 69% 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: Atour Lifestyle Holdings Ltd is principally engaged in the hotel operations. The Company's hotel network has approximately 834 hotels located across 151 cities in China, with more than 96,969 hotel rooms. The Company also has approximately 17 theme-based hotels, which includes music, basketball and literature themes. The Company provides a diversified hotel brand portfolio, including Atour, Atour S, Atour X, Atour Light, ZHOTEL and A.T. House. The Company also rents hotels to third-party lessors.
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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of ATOUR LIFESTYLE HOLDINGS LTD - ADR
AMERICAN EAGLE OUTFITTERS INC (AEO) is a mid-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% 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.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of AMERICAN EAGLE OUTFITTERS INC
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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 Martin Zweig - 9/23/2025

Mastercard today announced that its Board of Directors has declared a quarterly cash dividend of 76 cents per share. The cash dividend will be paid on November 7, 2025 to holders of record of its Class A common stock and Class B common stock as of October 9, 2025.
Kilroy Realty announced today that its Board of Directors declared a regular quarterly cash dividend of $0.54 per common share payable on Wednesday, October 8, 2025 to stockholders of record Tuesday, September 30, 2025. The dividend is equivalent to an annual rate of $2.16 per share.
The Board of Directors of S&P Global has approved a cash dividend on the Corporation's common stock for the fourth quarter of 2025. The dividend of $0.96 is payable on December 10, 2025, to shareholders of record on November 25, 2025. The annualized dividend rate is $3.84 per share. The Company has paid a dividend each year since 1937 and is one of fewer than 30 companies in the S&P 500— that has increased its dividend annually for more than 50 years.
American Eagle Outfitters announced a quarterly cash dividend of $0.125 per share. The dividend was declared on September 16, 2025 and is payable on October 29, 2025 to stockholders of record at the close of business on October 10, 2025.
Clorox announced today that its board of directors has declared a quarterly dividend of $1.24 per share on the company's common stock. The dividend is payable November 6, 2025, to shareholders of record as of the close of business on October 22, 2025. Clorox has a long history of providing value to its shareholders through regular dividend payments and annual dividend increases.
VIDEO: Daily Dividend Report: MA,KRC,SPGI,AEO,CLX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: MA,KRC,SPGI,AEO,CLX

The S&P 500 Index ($SPX) (SPY) today is up by +0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. September E-mini S&P futures (ESU25) are up +0.29%, and September E-mini Nasdaq futures (NQU25) are up +0.26%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Today’s weak US labor market reports knocked bond yields lower and reinforced speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17%, and the swaps market shows the chances of a Fed rate cut this month rising to 95%.
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Stocks maintained their gains on signs of strength in the service sector after the Aug ISM services index expanded at the fastest pace in six months.
Meanwhile, stocks are being undercut by weakness in chipmakers, led by a -5% fall in Texas Instruments after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped.
The Aug ADP employment change rose +54,000, weaker than expectations of +68,000.
US weekly initial unemployment claims rose by +8,000 to a 10-week high of 237,000, showing a weaker labor market than expectations of 230,000.
US Q2 nonfarm productivity was revised upward to +3.3% from the previously reported +2.4%, better than expectations of +2.7%. Q2 unit labor costs were revised downward to +1.0% from the previously reported +1.6%, weaker than expectations of +1.2%.
The US Aug ISM services index rose +1.9 to 52.0, stronger than expectations of 51.1 and the strongest pace of expansion in six months.
Looking ahead to Friday’s US economic reports, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 95% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.31%. China’s Shanghai Composite fell to a 2-week low and closed down -1.25%. Japan’s Nikkei Stock 225 closed up +1.53%.
Interest Rates
December 10-year T-notes (ZNZ5) today are up +3 ticks, and the 10-year T-note yield is down -1.9 bp to 4.197%.
Dec T-notes climbed to a 4.75-month high today, and the 10-year T-note yields fell to a 4-week low of 4.168%. Signs of a slowdown in the US labor market are bullish for T-notes after today’s weaker-than-expected ADP employment report and the rise in weekly initial unemployment claims to a 10-week high. The labor market weakness has boosted the chances of a Fed rate cut at the September 16-17 FOMC meeting to 95%, according to the swaps market. Also, today’s upward revision to Q2 nonfarm productivity and downward revision to Q2 unit labor cost are supportive for T-note prices. In addition, T-notes garnered support from today’s 1% fall in WTI crude prices to a 2-week low, which reduced inflation expectations as the 10-year breakeven inflation rate fell to a 1.5-week low of 2.392%.
T-notes fell back from their best levels after the Aug ISM services index rose more than expected to a 6-month high, a hawkish factor for Fed policy.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.4 bp to 2.717%. 10-year UK gilt yield is down -2.0 bp to 4.728%.
Eurozone July retail sales fell -0.5% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 13 months.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Homebuilders are climbing today after the 10-year T-note yield fell to a 4-month low, a bullish factor for housing demand. PulteGroup (PHM) and Toll Brothers (TOL) are up more than +3%. Also, Lennar (LEN) and DR Horton (DHI) are up more than +2%.
Hewlett Packard Enterprise (HPE) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 net revenue of $9.14 billion, stronger than the consensus of $8.65 billion.
T. Rowe Price Group (TROW) is up more than +5% after Goldman Sachs said it will invest as much as $1 billion in the company and team up with the asset manager to sell private-market products to retail investors.
American Eagle Outfitters (AEO) is up more than +31% after reporting Q2 net revenue of $1.28 billion, better than the consensus of $1.23 billion.
Ciena (CIEN) is up more than +23% after reporting Q3 adjusted EPS of 67 cents, stronger than the consensus of 53 cents.
Credo Technology Group (CRDO) is up more than +10% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 35 cents.
Amazon.com (AMZN) is up more than +2% to lead gainers in the Nasdaq 100 and Dow Jones Industrials after Business Insider reported the company is testing a new AI-powered workspace software called Quick Suite.
Genuine Parts (GPC) is up more than +2% after appointing two new directors to its board in cooperation with Elliott Investment Management.
Salesforce (CRM) is down more than -6% to lead losers in the Dow Jones Industrials after forecasting Q3 revenue of $10.24 billion to $10.29 billion, the midpoint below the consensus of $10.29 billion.
Texas Instruments (TXN) is down more than -5% to lead losers in the Nasdaq 100 and weigh on chip makers after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped. Also, NXP Semiconductors NV (NXPI) and GlobalFoundries (GFS) are down more than -2%. In addition, Advanced Micro Devices (AMD) is down more than -1%, and Analog Devices (ADI) is down -0.71%.
Health insurance stocks are sliding today after executives from Elevance Health said at the Wells Fargo Health Care Conference that it no longer expects Medicaid margins to improve in the second half of the year. As a result, Elevance Health (ELV), Centene (CNC), and Molina Healthcare (MOH) are down more than -4%.
Caleres (CAL) is down more than -11% after reporting Q2 gross margin of 43.4%, below the consensus of 44.6%.
Gitlab Inc (GTLB) is down more than -9% after forecasting 2026 revenue of $936 million to $942 million, the midpoint below the consensus of $940 million.
Science Applications International (SAIC) is down more than -4% after reporting Q2 revenue of $1.77 billion, weaker than the consensus of $1.86 billion, and cutting its 2026 revenue forecast to $7.25 billion-$7.33 billion from a previous forecast of $7.60 billion-$7.75 billion, well below the consensus of $7.63 billion.
Old Dominion Freight Line (ODFL) is down more than -2% after reporting less-than-truckload (LTL) tons per day for Aug fell -9.2% y/y.
Earnings Reports(9/4/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Copart Inc (CPRT), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Samsara Inc (IOT), Science Applications International (SAIC), Toro Co/The (TTC), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported by Fed Rate Cut Expectations

Shares of American Eagle Outfitters, Inc. AEO have jumped more than 24% in after-hours trading yesterday, after it reported solid second-quarter fiscal 2025 results and reinstated guidance for fiscal 2025. The company delivered top and bottom-line beats in the fiscal second quarter, with the latter also increasing year over year.
AEO posted earnings of 45 cents per share in the fiscal second quarter, surpassing the Zacks Consensus Estimate of 20 cents. Also, the bottom line increased 15% from the year-earlier quarter.
Shares of the Zacks Rank #3 (Hold) company have surged 65.7% in the past three months compared with the industry’s growth of 5.9%.
An Insight Into AEO’s Q2 Revenues
Total net revenues of $1.28 billion fell 1% year over year but came above the Zacks Consensus Estimate of $1.23 billion. Consolidated comparable sales (comps) fell 1% in the quarter. A lower average unit price was largely offset by higher transaction volumes, which benefited from positive traffic within the selling channels. The company witnessed demand pick up as the quarter progressed. July was the best month of the reported quarter as AEO introduced the initial back-to-school product collections. Our model predicted negative comps of 3% for the fiscal second quarter.
American Eagle Outfitters, Inc. Price, Consensus and EPS Surprise
Brand-wise, revenues declined 3.3% year over year to $800.4 million at the American Eagle brand. Also, comps for the brand fell 3%.
Revenues jumped 3.2% year over year to $429.1 million for the Aerie brand. Comps for the Aerie brand rose 3%. We expected a sales decline of 4.9% year over year at the American Eagle brand and 4.7% at Aerie in the reported quarter.
An Insight Into AEO’s Margins & Expenses
Gross profit inched up 0.2% year over year to $500 million. The gross margin of 38.9% expanded 30 basis points (bps) from the year-ago quarter, owing to a 50-bps rise in merchandise margins, backed by lower markdowns. Additionally, buying, occupancy and warehousing expenses were flat year over year, deleveraging 20 bps due to lower sales.
Selling, general and administrative (SG&A) expenses dipped 1% year over year to $342.2 million. As a percentage of sales, SG&A expenses were flat year over year. While the company benefited from lower compensation costs, this was partly offset by higher advertising spending.
American Eagle reported an adjusted operating income of $103.1 million, up 2% from the prior-year quarter.
AEO’s Financial Health Snapshot
American Eagle ended the fiscal second quarter with cash and cash equivalents of $126.8 million, with a net long-term debt of $203 million. Total shareholders’ equity was $1.54 billion as of Aug. 2, 2025. The company had a total liquidity of roughly $400 million. It drew down $200 million from its revolver to aid the buyback program and seasonal cash needs. By year-end, it projects repaying the majority of outstanding debt and starting to rebuild cash. Inventory increased 8% year over year to $718.3 million at the end of the reported quarter.
Capital expenditures were $71 million in the fiscal second quarter, with a year-to-date spend of $133 million. The company anticipates incurring capital expenditures of $275 million for fiscal 2025.
In the fiscal second quarter, American Eagle completed its $200-million accelerated share repurchase agreement (ASR), which represents an aggregate repurchase of nearly 18 million shares. Year-to-date, it has repurchased $231 million, reducing the number of shares by 20 million, which is approximately 10% of the outstanding diluted shares. AEO also paid $21 million as quarterly cash dividends, bringing year-to-date dividends of $43 million.
What to Expect From AEO Ahead?
For the third quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are expected to rise in the high single digits. Depreciation and amortization are estimated at $54 million, and operating income is anticipated to be $95-$100 million, including nearly $20 million of higher tariff costs. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares. Buying, occupancy and warehousing costs are likely to increase due to store growth for Aerie, both offline and online, and higher digital penetration, leading to slight deleverage. SG&A is forecast to rise in the high single digits, thanks to investments in advertising.
For the fourth quarter of fiscal 2025, the company expects comps to rise in the low single digits. The gross margin is projected to be down year over year, while SG&A dollars are forecast to remain flat to down slightly year over year. Depreciation and amortization are anticipated at $56 million, and operating income is anticipated to be $125-$130 million, including approximately $40-$50 million of tariff impact in the fiscal fourth quarter. SG&A is likely to drop slightly in the quarter. The effective tax rate is expected to be around 25% and the weighted average share count is projected at 172 million shares.
The company is prioritizing investments across its digital channel, with foundational improvements to the shopping experience. It is focused on optimizing its store fleet to ensure the best locations, offering a seamless customer experience and tapping additional growth opportunities. This year, the company is on track to open roughly 30 Aerie and offline locations and remodel 40-50 AE stores for a modern design. It anticipates shutting down 35-40 American Eagle locations by the end of the year.
Management is impressed by the progress made in the reported quarter. The company is focused on building upon its sales momentum, managing costs and making continued improvements to deliver profitability. The outlook reflects projected tariffs based on the latest trade policies. For fiscal 2025, AEO expects comps to stay flat year over year. The gross margin is projected to be down year over year, while SG&A dollars are forecast to be up year over year. Depreciation and amortization are anticipated at $217 million and adjusted operating income is anticipated to be $255-$265 million. The effective tax rate is expected to be around 25%, and the weighted average share count is projected at 174 million shares.
Eye These Solid Picks in Retail
Levi Strauss & Co. LEVI, designer and marketer of jeans, casual wear and related accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Levi Strauss’ current financial-year EPS indicates growth of 4% from the year-ago figure. LEVI delivered an average earnings surprise of 25.9% in the trailing four quarters.
Genesco Inc. GCO operates as a retailer and wholesaler of footwear, apparel and accessories, carrying a Zacks Rank #2 (Buy) at present. GCO delivered a trailing four-quarter earnings surprise of 32.4%, on average.
The Zacks Consensus Estimate for Genesco’s current fiscal-year EPS and sales indicates growth of 66% and 1.7%, respectively, from the year-ago period’s reported figures.
Allbirds, Inc. BIRD, a lifestyle brand, currently has a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 20.7%, on average.
The Zacks Consensus Estimate for BIRD’s current financial-year EPS indicates growth of 18.3% from the year-ago figure.
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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, Inc.

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