AEO: Buy the Aerie-Led Growth Story - Cheap, Cash-Generative, and Underowned
American Eagle Outfitters is trading at bargain multiples despite Aerie and OFFLINE driving mid-20% comparable sales growth. Fundamentals - low leverage, meaningful free cash flow, and an EV/EBITDA of ~4.6 - support a long trade into the next two earnings cycles. Entry at $17.75, target $25.00, stop $14.50 for a long-term (180 trading days) swing.