After the Pop, Is American Eagle a Buy?
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.
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The article After the Pop, Is American Eagle a Buy? originally appeared on Fool.com.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.
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