Skyrocketing American Eagle Outfitters Stock posted a 45% increase this week

American Eagle Outfitters (AEO) has announced its second-quarter results, which saw a significant increase in share value and surpassed analyst estimates. The company's revenue for the quarter was $1.28 billion, a year-over-year drop of 1%, but both revenue and profitability beat expectations.

The better-than-anticipated performance can be attributed to increased demand, reduced spending on promotions, and greater control with expenses. The company's gross margin stands at 32.94%.

As of the current exchange, AEO's share price is $18.83, with a market cap of $3 billion. The positive outlook for American Eagle Outfitters is largely due to the success of the Aerie brand, according to UBS analyst Jay Sole. Sole has raised his price target on AEO's stock to $21.50 per share and maintained his buy recommendation.

The price target increase is not the only positive sentiment surrounding AEO. As of the current analysis, about 10% of analysts have a strong buy rating, 82% have a hold rating, and only 10% have a sell rating. However, the specific analyst or firm who increased the price target to $21.50 is not clearly mentioned in the available search results.

In addition to its strong financial performance, American Eagle Outfitters has also been making waves in the marketing world. The company recently launched a high-profile campaign featuring actor Sydney Sweeney and engaged football star Travis Kelce.

While this news is exciting for American Eagle Outfitters investors, it's important to note that The Motley Fool Stock Advisor analyst team did not include AEO in their list of the 10 best stocks for investors to buy now. However, the potential for monster returns if an investor purchased stocks recommended by The Motley Fool Stock Advisor in the past, such as Netflix and Nvidia, is a testament to the service's success.

The Motley Fool Stock Advisor's total average return is 1,065%, significantly higher than the S&P 500's 186%. If you're interested in discovering the latest list of the 10 best stocks, be sure to check out The Motley Fool Stock Advisor.

As of September 5, 2025, the returns for stocks recommended by The Motley Fool Stock Advisor are not provided in this article. Nonetheless, the service continues to be a popular choice for investors seeking high-performing stocks.