what do you think of american eagle as a stock?

Question

do you think i should buy it?

i know its trendy, but it has done better than abercrombie and fitch and every other teen retailer

Answer 1

Funny you should mention that stock. It's one of the ones I own.

Overall, it's in an uptrend, but has been going mainly sideways for a while now (a month and a half).

Right now, the retail sector, though in an intermediate upward trend has given many signals that it may be ready for a little pullback (rest). As such, depending on your timeframe and risk tolerance you may / may not want to enter at this point.

If you're set on entering, try to enter around 45, but have a stop set around 44 to limit any losses should it follow some of the stocks in the sector. With the sideways pattern, it could drop to 43 or lower, but is one of the stronger stocks in the sector, so if you've got a stronger stomach to take a loss initially, you could set a lower stop.

An alternative might be JWN (Nordstroms) or KSS (Kohls) or JCP (JC Penneys). All three are stronger than AEOS. But you might want to wait a couple days to see if this pullback continues or if the stocks recover and bounce up.

As for ANF, it's actually been stronger in the short term (except for the last week) vs. AEOS. If ANF breaks 75 with volume, that'd be a good signal for me. :-)

As for me and AEOS, given the current signals, I'm going to sell most of my holdings in it for now. But, then again, I trade mostly short term positions, so I'm going to lock in profits. When it finds support, I'll consider entering again. But until that time, I'm perfectly happy watching it.

If you have any questions, let me know.

Hope that helps!

Answer 2

I never bought any clothing from AEOS, but I bought the stock about 7 months ago, and made some good money. Unfortunately for me, the stock has gone up a lot since I sold. I think at this point the stock might be a little expensive. The simple answer on this is: if you like the brand and visit the stores often, and are a long-term investor, then you should buy.

If you are looking for other investment ideas, I would suggest http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck!

Answer 3

No, it's trendy so it goes up and down to often in unpredictable patterns.