- American Eagle reported a blowout quarter in Q1, helped by Aerie which grew by more than 150% vs. Q1 2019 levels.
- On the back of the strong results, the company has increased its quarterly dividend to $0.18, translating a forward yield of more than 1.90%.
- However, while the stock has a bright year ahead and Aerie continues to grow at a rapid pace, the stock is no longer cheap, trading at more than 1.55x sales.
- So, while I see stock American Eagle as a solid buy-the-dip candidate in the retail space, I would not be chasing the stock here above $37.20.
For further details see:
American Eagle: Don't Chase The Stock Here