Better Value & Growth: URBN, ANF Lead American Eagle Outfitters Stock
URBN, ANF are American Eagle Outfitters’s peers in Apparel Retail industry that have:
1) Lower valuation (P/OpInc) compared to American Eagle Outfitters stock
2) But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying URBN, ANF stocks vs. AEO stock
We know that clients love their favorite stocks, but single-stock risk can undo years of gains. Savvy financial advisors diversify intelligently – learn how our Boston-based wealth management partner can help.
- American Eagle Outfitters Stock To $17?
- Better Value & Growth: ANF Leads American Eagle Outfitters Stock
- Better Bet Than American Eagle Outfitters Stock: Pay Less To Get More From ANF
- AEO Stock: Marketing Wins Drive Q2 Beat, Fundamentals Still Mixed
- Better Bet Than American Eagle Outfitters Stock: Pay Less To Get More From ANF
- AEO’s One-Day Rally Offers a Chance to Reevaluate GAP
Key Metrics Compared
| Metric | AEO | URBN | ANF |
|---|---|---|---|
| P/OpInc* | 10.0x | 9.9x | 4.3x |
| LTM OpInc Growth | -30.7% | 41.8% | 11.6% |
| 3Y Avg OpInc Growth | -2.0% | 24.1% | 83.0% |
| LTM Revenue Growth | -2.7% | 9.6% | 9.3% |
| 3Y Avg Revenue Growth | 1.6% | 7.5% | 11.7% |
OpInc = Operating Income, P/OpInc = Price To Operating Income Ratio
But do these numbers tell the full story? Read Buy or Sell AEO Stock to see if American Eagle Outfitters still has an edge that holds up under the hood. As a quick background, American Eagle Outfitters (AEO) provides clothing, accessories, and personal care products through American Eagle, Aerie, and Todd Snyder brands, operating over 1,100 stores across the US, Canada, Mexico, and Hong Kong.
This is just one approach to evaluate investments. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Is The Mismatch In Stock Price Temporary
One way to check if American Eagle Outfitters stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for American Eagle Outfitters in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for American Eagle Outfitters would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | AEO | URBN | ANF |
|---|---|---|---|
| P/OpInc* | 9.9x | 6.5x | 9.8x |
| LTM OpInc Growth | -24.9% | 39.0% | 22.7% |
| 3Y Avg OpInc Growth | -8.4% | 18.6% | 102.5% |
| LTM Revenue Growth | -0.9% | 8.4% | 12.5% |
| 3Y Avg Revenue Growth | 1.6% | 6.7% | 10.6% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | AEO | URBN | ANF |
|---|---|---|---|
| P/S | 0.6x | 0.9x | 0.6x |
| Market Cap (Current) | $ 3.0 Bil | $ 5.5 Bil | $ 3.2 Bil |
| LTM Revenue | $ 5.27 Bil | $ 5.83 Bil | $ 5.10 Bil |
| LTM Opinc | $ 300.94 Mil | $ 556.62 Mil | $ 743.54 Mil |
| LTM Op Margin | 5.7% | 9.5% | 14.6% |
OpInc = Operating Income
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the its benchmark – a combination of S&P 500, Russell, and S&P midcap index.