Analyst: Buy This Retailer After Black Friday

American Eagle earnings are expected next Wednesday, Dec. 5

Nov 26, 2018 at 9:35 AM
facebook X logo linkedin


Deutsche Bank upgraded American Eagle Outfitters (NYSE:AEO) to "buy" from "hold," saying the retail stock is attractive at current levels. AEO stock closed last week at $19.54, but is up 5.5% this morning at $20.62.

This upbeat outlook just echoes the broader sentiment seen among the brokerage bunch, with nearly all of the 12 analysts in coverage maintaining a "buy" or better rating. Plus, the average 12-month AEO price target of $25.08 is a 22% premium to the security's present perch.

Options traders have taken the bullish route toward AEO in recent weeks, too. In the last 10 trading days, the weekly 12/7 21-strike call saw the biggest increase in open interest, and data from Trade-Alert points to mostly buy-to-open activity here. If this is the case, the goal is for the equity to break out above $21 by the close on Friday, Dec. 7 -- a time frame that includes American Eagle's earnings report, slated for release the morning of Wednesday, Dec. 5.

Looking closer at the charts, AEO shares have shed roughly 31% since their late-August 11-year peak of $29.88, but have found a recent foothold atop their year-to-date breakeven mark of $18.80. However, the round $20 level kept a tight lid on the shares last week, and currently coincides with American Eagle stock's 320-day moving average.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI