Is American Eagle Outfitters Stock a Buy?
American Eagle Outfitters' (NYSE: AEO) stock plunged nearly 70% over the past 12 months as the apparel retailer grappled with slowing sales growth, contracting margins, and the COVID-19 pandemic. It also closed its stores, deferred its dividend payment, and recently priced a new offering of convertible notes to cope with the crisis.
Those developments clearly spooked the bulls, but are investors too bearish on AEO, which has posted five straight years of comparable store sales growth as many of its rivals succumbed to the retail apocalypse? Let's dig deeper to see if AEO's stock will rebound after the pandemic passes.
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Source Fool.com
