January 4, 2005

SpeculatingStocks.com Stock Pick: American Eagle Outfitters, Inc. (AEOS)

Stock Price: $46.92 (long-term strong buy)

American Eagle Outfitters is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, casual clothing for 15 to 25 year olds, providing high-quality merchandise at affordable prices.

The retail sector had a huge run all of last year, and will not continue to remain at such inflated levels. Investors and even institutions for that matter will begin to pull out of stocks like AEOS as there are so many better opportunities in other sectors.

AEOS is trading at over four times book value. The company now has a market cap of $3.46 billion.

SpeculatingStocks.com Target Price: We expect AEOS to plummet to under $25 by spring.