Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, teen-oriented apparel retailer American Eagle Outfitters
With that in mind, let's take a closer look at American Eagle's business and see what CAPS investors are saying about the stock right now.
American Eagle facts
|Headquarters (Founded)||Pittsburgh (1972)|
|Market Cap||$3 billion|
|Trailing-12-Month Revenue||$3.06 billion|
CEO James O'Donnell (since 2003)
CFO Joan Hilson (since 2009)
|Return on Equity (Average, Past 3 Years)||13.6%|
|Cash/Debt||$634.5 million / $0|
Abercrombie & Fitch
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
American Eagle's solid fundamentals, cheapish valuation, and position as a fashionable yet affordable teen brand continue to support its four-star CAPS rating. Currently, American Eagle even trades at a clear price-to-cash flow (8.5) discount to rivals Abercrombie (16.2), Aeropostale (9.6), and Guess? (14.2), as well as other retail apparel plays like J. Crew
CAPS member hybridinvestor expands on why American Eagle seems all set to soar:
Looking around at what appears to be an economy rebounding better than expected, we can see that the retail issues have all been run-up significantly on those expectations. I see very little safe value in the retail space except for a couple issues and American Eagle is one of them. ... [T]rading reasonably in terms of expected profits. Great balance sheet and they are closing down some non-performing divisions. I expect to see this laggard in the retail space catch up over time.
What do you think about American Eagle, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Aeropostale and Guess?. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.