American Eagle Outfitters shows relatively strong fundamentals and is coming back to attractive price.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales ratio of 0.83.
However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at USD 1.52 for this year and USD 1.71 for the next year, American Eagle Outfitters is currently paid 12.32 and 10.98 times the results.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 20.6, shows. Nevertheless, the stock seems in an oversold situation, near to its USD 18.5 support in daily data. This level might stop the bearish trend in the short term.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in American Eagle Outfitters in order to benefit from the USD 18.5 support area. A first target price will be the USD 20.3 resistance. A stop loss order will be placed under the mid-term support currently tested.