American Eagle Outfitters (AEO) NewsBite - AEO October Sales Disappoint

Posted: Thursday, November 05, 2009 10:02 AM EDT

American Eagle Outfitters (NYSE: AEO) opened at $16.04. So far today, the stock has hit a low of $15.65 and a high of $16.47. AEO is now trading at $16.11, down $1.75 (-9.8%). Over the last 52 weeks the stock has ranged from a low of $6.98 to a high of $19.86. AEO said this morning its same-store sales fell 5.0 percent in October, well below analysts' estimates of a 1.7 percent gain. The company also adjusted its Q3 EPS forecast to 20 to 21 cents, from a previous range of 19 to 21 cents. The new forecast is still below analysts' estimates of 22 cents. Technical indicators for the stock are neutral and S&P gives AEO a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on AEO the stock seems like it could be a candidate for a February out-of-the-money bear-call credit spread above the 20 range. [ABR-Seven Summits Strategic Investments NewsBite]

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