American Eagle Outfitters shows relatively strong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, the security is cheap with a P/E Ratio of 14.7x for 2016 and 13.3x for 2017.
Besides, EV/Sales is low with a ratio at 0.74x for this year.
Currently the stock is oversold and, in the mid-term, is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 14.9 area. American Eagle Outfitters should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards USD 15.6 and by extension towards USD 16.5.
Therefore, the proximity of the USD 14.9 support is an opportunity to go long on American Eagle Outfitters. The first goal is a return in the USD 16.5 resistance area, that is a potential of 10%. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid term. A stop loss order can be placed under the support currently tested, below the recent lows.
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.
AMERICAN EAGLE OUTFITTERS, INC. 
