Stocks Tumbling on Lethargic Results: American Eagle Outfitters, Inc. (NYSE:AEO), Royal Caribbean Cruises Ltd. (NYSE:RCL)

American Eagle Outfitters, Inc. (NYSE:AEO) also run on active notice, stock price reduced -0.67% after traded at $16.24 in most recent trading session.  American Eagle Outfitters (AEO) declared its third-quarter results in late November, which marked an end to earnings season for the teen apparel space.

In a research report dated Thursday, Anna Andreeva of Oppenheimer maintained a Perform rating on American Eagle with a $17 price target. The analyst noted that since the retailer declared its results in late November, the stock lost 10 percent but recovered as investors are banking on the fact that the retailer stands to gain from Aeropostale store closures. Andreeva argued that out of the approximately 180 Aeropostale store closures in American Eagle’s markets, half have already shut down, and the remainder will close in January. Since Aeropostale was extremely promotional in its selling, American Eagle likely lost out on selling opportunities.

AEO has price to earnings ratio of 12.77 and the price to current year EPS stands at 138.90%. Whereas the traders who further want to see about this, may be interested to see Price to next year’s EPS that would be 7.67%. The earning yield also gives right direction to lure investment, as the co has 3.06% dividend yield. Moving toward ratio analysis, it has current ratio of 1.70 and quick ratio was calculated as 0.80. The debt to equity ratio appeared as 0.00 for seeing its liquidity position.

Taking notice on volatility measures, price volatility of stock was 3.04% for a week and 3.38% for a month. The price volatility’s Average True Range for 14 days was 0.67. On these bases, analysts would recommend this stock as an “Active Revolving Stocks.” The firm attains analyst recommendation of 2.50 out of 1-5 scale with week’s performance of -8.35%. AEO’s institutional ownership was registered as 95.50%, while insider ownership was 0.20%.

Royal Caribbean Cruises Ltd. (NYSE:RCL) persists its position slightly strong in context of buying side, while shares price plummeted -1.76% during latest trading session.

Analysts Practices; to watch unbiased undervalue securities, there is need to see following technical rations. RCL holds price to earnings ratio of 14.81 that presents much better indication for a stock’s value than the market price alone. Based on historic views, the average P/E ratio in market fluctuates between 15 to 25, but alone low P/E ratio does not necessarily mean that a company is undervalue. With reference to all theories, earning yield also gives right direction to lure investment, as RCL has 2.28% dividend yield.

Narrow down focus to other ratios, the co has current ratio of 0.20 that indicates if RCL lies in 1.3% to 3% then it is acceptable for both active and passive investors, but sometimes its varies industry to industry. Generally, it indicates good short-term financial strength. Street is more conscious on this after SunEdison, Inc. case. To make strengthen these views, the active industry firm has Quick Ratio of 0.20, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.11, sometimes its remain same with long term debt to equity ratio.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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