AEO trade ideas
How To: Screen for Stocks Making a Bullish MACD CrossoverThe MACD is one of the most commonly used indicators as it can help traders identify the strength of a movement, as well as direction, momentum and likely duration of a trend.
In this video we use the TradingView Screener to filter all 10,000+ US stocks and ETFs down to a small handful of shares that we can then go through and review.
The filter was set to look for stocks where the MACD was crossing up through its SIGNAL line on the previous days trade - often seen as a bullish signal and sometimes the start of a longer term move.
To reduce the number of results even further, we used other filters that allowed us to search for stocks over a certain price, where their performance over the last 3 and 12 months was in an upward direction, and where there were signs of unusual volume coming through.
The screener is the ULTIMATE way to get your own free signals every day.
Hope you like and find the video useful. Give it a thumbs up please if you do :)
AMERICAN EAGLE OUTFITTERS Opportunity DailyHey investors, AMERICAN EAGLE OUTFITTERS is in a bullish movement with a large buying volume we see a slowdown. on TIMEFRAME 4 H. AMERICAN EAGLE OUTFITTERS is in bullish continuity See TIMEFRAME 1 min, she goes to next high. We can go above to go to the next higher, which corresponds to the middle of the past sharp drop.
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American Eagle Outfitters - Multi-year Support BreakoutThe past 3-months' pullback seems to confirm the bearish breakout.
RSI is currently just above 40, and a drop below 40 is needed to further confirm the breakout.
Stochastic is currently under 20, the pullback was so quick that the stochastics did not show a retracement.
American Eagle - stick a fork in retail, it's dead. Or is it?Even though it makes no goddamn sense AEO has been rallying lately, albeit with quite a bit of chop. Maybe people are getting more optimistic about AE's ability to come back from the 'Rona, who knows, but at any rate you could potentially position to take advantage of this trend by purchasing $9.50 calls. If the stock continues to mean revert back to its 200DMA, you will pack away a tidy profit.
AMERICAN EAGLE - LongsMy positive view:
1) AEO is well positioned as one of the most 'inclusive' brands to outperform peers
2) consistently solid comps (+2%, 20th consecutive quarter of growth) and healthy fundamentals (ample
liquidity and little debt), which underscores strength of leading brands and the company's ability to expand footprint (+70 in FY 21) and
capture share from competitors' woes like GPS and LB, which I expect to shutter 230 and 53 stores through FY 21
3) AEO boasts an attractive yield (4.3%).
Risks: margin headwinds tariffs and supply chain disruptions from the coronavirus, an estimate a $0.01 headwind in the first quarter of FY 21. About 30% of AEO's production comes from China and we see figure falling below 20% in 2020.
A 12-month target of $16 is 11.3x, FY 21
EPS estimate of $1.41, below 3-year historical forward P/E average, reflecting expectation that apparel is in for a tough 2020 due to:
1) increased acceptance of secondhand clothing;
2) a softening economic environment;
3) thinning retail traffic due to coronavirus. (January clothing sales dropped 3.1% from December, the steepest drop since March
2009.)
AEO double bottomAEO is rebounding off of a double-bottom. Volume today and yesterday was very high, signifying that there's lots of activity at this price. Risk is ~7%, which is pretty high, but the risk-reward ratio is ~5.5, which is not bad. MACD is showing a sell signal, but RSI and the price movement is showing that it is (hopefully) a good time to buy.
Other analysts are also saying to buy or hold, and I know other people who have similar ideas.
I entered in at $6.82 and set the stop loss at $6.40.
$AEO Looks To Be A Good Risk/Reward Play$AEO has a multiple bottom in place and is on the verge of breaking out of the downtrend line. With the stock trading at just 9.7x earnings, there's been talk of M&A happening in the beaten-down retail space. Citi sees M&A optionality with Abercrombie & Fitch (NYSE:ANF). The firm thinks Amazon (NASDAQ:AMZN) should take a look at an acquisition or a merger with American Eagle Outfitters (NYSE:AEO) should be considered.
Also within the apparel sector - PVH (NYSE:PVH), V.F. Corp. (NYSE:VFC) and Capri Holdings (NYSE:CPRI) are seen as potential buyers of an attractive brand like Decker Outdoors' (NYSE:DECK) Hoka brand or Oxford Industries' (NYSE:OXM) Tommy Bahama, Lilly Pulitzer and Southern Tide brands. Columbia Sportswear (NASDAQ:COLM) and L Brands' Victoria's Secret business (NYSE:LB) are mentioned as potential targets.
There's also room for short covering as 14.5% of the float is short.
American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. The company also provides jeans, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women. In addition, it offers sports apparel under the Tailgate brand; and menswear products under the Todd Snyder New York brand name. As of March 6, 2019, it operated approximately 934 American Eagle stores, 262 Aerie stores, 5 Tailgate stand-alone stores, and 1 Todd Snyder stand-alone store in the United States, Canada, Mexico, China, and Hong Kong. It also ships to 81 countries through its Websites; and offers its merchandise at 231 locations operated by licensees in 24 countries, as well as provides products through its Websites ae.com, aerie.com, and ToddSnyder.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
As always, trade with caution and use protective stops.
Good luck to all!