$AEO Reports 9.7% Revenue Growth, Trades at 60% Discount to Fair Value
American Eagle Outfitters reported 9.7% YoY revenue growth. With a 6-model fair value of $27.16 vs a $16.89 price, $AEO trades at a significant discount.
AEO reported earnings on September 9, 2026. Quarterly revenue grew 9.7% year over year, a meaningful acceleration for a retailer operating in a cautious consumer environment. The stock trades at $16.89 with a market cap of $2.89B.
The ACCE score sits at 55/100. The breakdown tells the real story: Value scores 91/100, Quality comes in at 56/100, Growth at 40/100, and Momentum at 34/100. The low momentum score reflects the stock's 1-year return of -6.2%, which has pulled the price well below what the fundamentals suggest it's worth.
On those fundamentals: ROE is 17.6%, net margin is 5.0%, and FCF yield is 6.7%. A trailing P/E of 10.8 and a forward P/E of 11.7 put AEO at a valuation that looks cheap relative to the broader consumer cyclical sector. The dividend yield stands at 2.9%, which adds a concrete return component while investors wait for any price recovery.
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The six-model fair value estimate is $27.16, representing a 60.8% gap above the current price of $16.89. The consensus analyst target is $19.55, which is more conservative but still implies meaningful upside from here.
What it means
The 9.7% revenue growth is the headline number worth watching. For a specialty apparel retailer, that kind of top-line expansion suggests the brand is holding share and moving product. Whether that translated into earnings growth this quarter, we don't have a verified figure to report, so check the live page at acceinvestments.com/stocks/AEO for the latest EPS data as it becomes available.
We also don't have guidance commentary from this report, so the forward picture is limited to what the forward P/E of 11.7 implies: the market is pricing in modest earnings growth, nothing dramatic.
The Value score of 91 is the standout data point. Combined with a FCF yield of 6.7% and a P/E below 11, AEO looks like a stock the market has discounted heavily relative to its cash generation. The 60.8% gap between price and the six-model fair value is wide enough to warrant attention, though the Momentum score of 34 is a reminder that cheap stocks can stay cheap for a while.
For live price, full earnings data, and score updates, visit acceinvestments.com/stocks/AEO.
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