American Eagle Outfitters, Inc. (AEO): A Bull Case Theory

We came across a bullish thesis on American Eagle Outfitters, Inc. on TickerTrends Research’s Substack by TickerTrends. In this article, we will summarize the bulls’ thesis on AEO. American Eagle Outfitters, Inc.’s share was trading at $12.60 as of August 7^th. AEO’s trailing and forward P/E were 12.86 and 14.84, respectively according to Yahoo Finance.

American Eagle (AEO) is witnessing a surge in brand attention following the launch of its new jeans campaign featuring Sydney Sweeney. While the campaign drew criticism online—some calling its aesthetics eugenic—unexpected momentum followed, amplified by public endorsement from former President Donald Trump. This political spotlight could risk alienating AEO’s primarily female customer base, which leans Democratic according to Pew Research. However, early signals from alternative data suggest the attention may be benefiting the brand.

On Instagram, American Eagle’s follower growth jumped from a stagnant ~300 per week to ~115,000 over two weeks. On TikTok, hashtag impressions for “#americaneaglejeans” surged from ~1M to over ~20M per day at the late July peak, and Wikipedia page views spiked from ~1,500 to over 55,000 in the same period. Website traffic tells a similar story: ae.com has averaged 1.5 million more weekly visits than the same period last year. Importantly, the percentage of visits that reach the cart page remains steady at ~6.08–6.16%, indicating strong purchase intent despite the controversy.

This contrasts sharply with recent backlash against Duolingo, whose controversy led to follower losses across social media platforms. In American Eagle’s case, rising followers suggest broader interest and engagement. Whether this attention converts into long-term momentum remains to be seen, but early signs are promising. With a 35% YoY increase in consumer interest per the TickerTrends Brand Tracker, American Eagle may have captured a rare moment of cultural relevance that could catalyze its next phase of growth.

Previously, we covered a bullish thesis on lululemon athletica inc. (LULU) by FeedbackAlarmed5045 in May 2025, which highlighted the company’s pricing power, brand strength, and international expansion. The company’s stock price has depreciated by approximately 31.67% since our coverage. This is because macro pressures impacted sentiment. The thesis still stands as fundamentals remain strong. TickerTrends shares a similar view on AEO but emphasizes viral brand momentum.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.