The Market Has Clipped American Eagle's Wings. Can It Soar Again?
The last few years have been tough for retail stocks, which initially had to deal with the "death of retail" and "death of the mall" tropes as e-commerce became more prominent. They suffered the disruption caused by the COVID-19 pandemic, and now many fear that inflation will hurt discretionary spending.
While it has been a challenging space, this has also created buying opportunities for some strong companies that should be able to survive and thrive going forward. One strong example is American Eagle (NYSE: AEO). With a $2.4 billion market capitalization, the company is popular with younger consumers who can grow with it. The company is also expanding its Aerie line of clothes.
Meanwhile, the shares trade at an extremely cheap valuation and pay out an attractive dividend yield of over 5%. Let's take a closer look.
Source Fool.com
