What to Watch With AEO Stock in 2026
American Eagle Outfitters (NYSE: AEO) shows that you don't have to rely on artificial intelligence (AI) stocks to beat the S&P 500. The global clothing retailer is up by more than 50% over the past year and made plenty of headlines with its viral Sydney Sweeney marketing campaign. Its revenue swung back to growth in its fiscal third quarter, which ended Nov. 1, after a few consecutive quarters of declining sales.
However, investors shouldn't assume that American Eagle can consistently outperform the S&P 500. The apparel company's stock is only up by 21% over the past five years, and its positive returns over that stretch are largely due to the stock's run-up in the second half of 2025.
Source Fool.com
