American Eagle Outfitters' (NYSE: AEO) stock price surged 18% on Nov. 22 in response to the company's third-quarter earnings report. The apparel retailer's revenue declined 3% year over year to $1.24 billion, but still beat analysts' estimates by $40 million. Its net income dropped 47% to $81 million, or $0.42 per share, which also cleared the consensus forecast by $0.21.

American Eagle Outfitters' (AEO) headline numbers cleared Wall Street's low bar, but its stock price remains down nearly 40% for the year after its latest rally. Should investors buy this beaten-down apparel stock as a turnaround play?

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Source Fool.com