After the Pop, Is American Eagle a Buy?

Before you go, we thought you'd like these...
Before you go close icon

Shares of American Eagle (NYS: AEO) popped the other day after strong earnings. Despite a strong overall performance, though, Austin isn't buying the company on the news. The year-over-year comparison makes a beat relatively easy for American Eagle and doesn't do much to convince Austin of any strength in the teen retail segment. The nearest competitors to American Eagle have guided lower for the second half of the year and indicate broader weakness. 

Austin instead recommends rock-solid operator The Buckle (NYS: BKE) . The company has a restrained approach to growth and an incredible special dividend. 

If you're on the hunt for a great dividend stock but aren't convinced that The Buckle is the right choice for you, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Aeropostale and The Buckle. Motley Fool newsletter services recommend The Buckle. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners