On the second day of trading, American Eagle Outfitters (AEO) will be reporting their earnings before the market opens. Although this company isn’t on anyone’s priority list, earnings reports always gives the opportunity to make some gains.
American Eagle Outfitters is Riding High
American Eagle Outfitters’ earnings report comes after a 5% gain when the market was going down. This is obviously a green light for the company as investors are bullish before the earnings report. What most investors are betting on is a strong digital sales performance.
American Eagle Outfitters definitely has enough cash to weather any kind of hits that COVID may have caused. They are positioned well for revenue growth with smart investing in their growing digital platform. And with consumers looking to spend more money now that the holidays are coming. This could offset the losses that American Eagle Outfitters experienced during COVID.
Earnings Report Preview
Even though retailers aren’t the safest bet right now since COVID hit that sector pretty hard. But that also gives the opportunity for some good gains to be made. There could be some companies that investors are assuming got hit hard by COVID but that still posted strong numbers. We expect American Eagle Outfitters’ earnings report to show strong numbers and have a great outlook.
One other thing to note is that many investors believe that the company is undervalued so it has the room to grow. We do believe that this is a much better opportunity to make some gains than the Lululemon Athletica Inc. (LULU) shorts. Make sure to keep an eye for American Eagle Outfitters’ earnings report. One things that might make this an attractive buy for smaller investors is its low price stock. As of 09/05/2020, AEO is $12.86.
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Financial Disclosure
Do not base any investment decision on anything that you read on this post. I am not qualified nor licensed to provide advice on stocks and investing. This is an opinion piece mainly mean to spread some information about a certain situation. All claims in this article are speculative and should not be taken as advice. I do not own or plan on owning any stock or options from the companies mentioned above.
