American Eagle Stock Soars - Just Like Our AI Predicted

September 3, 6:04 pm

American Eagle Outfitters (AEO) has just delivered one of the most impressive earnings surprises of the season, and if you’ve been following AltIndex, you saw it coming weeks in advance. Thanks to a surge in alternative data signals that we track on daily basis, we issued a buy signal for American Eagle on August 13, giving our members the insight to profit well before the broader market caught on today when the company report earnings.

Let’s break down how this unfolded - why American Eagle stock jumped, how alternative data pointed to it early, what the latest earnings report revealed, and what smart investors should monitor next.

Alternative Signals Triggered a Buy in Early August

In early August, we noticed something big happening beneath the surface of American Eagle’s digital footprint. Our AI Score began to climb rapidly, fueled by several key alternative data indicators:

• +100,000 new Instagram followers
• +40,000 new TikTok followers
• +20,000 new followers on X (formerly Twitter)
• +20% increase in website traffic over 3 months

This surge in social media attention and digital engagement was no coincidence. It coincided with the July launch of the brand’s high-profile campaign featuring actress Sydney Sweeney, followed by a partnership with Travis Kelce, the NFL star whose fame has only increased through his relationship with Taylor Swift.

These campaigns captured consumer attention and translated into real behavioral changes - more followers, more searches, and more traffic to American Eagle’s digital storefront. Our AI algorithms picked up on this shift, triggering a buy signal on August 13 that gave investors nearly 25% returns in less than three weeks.

The Stock Jumps on Earnings Beat

On Wednesday, American Eagle reported quarterly earnings that exceeded all expectations. Here’s how the company performed compared to analyst estimates:

Metric	Reported	Expected
Earnings per Share	$0.45	$0.21
Revenue	$1.28B	$1.24B

This massive earnings beat sent the stock soaring more than 25% in after-hours trading, a move that shocked many on Wall Street but came as no surprise to our members.

The company’s net income came in at $77.6 million, or $0.45 per share, compared with $77.3 million, or $0.39 per share, a year ago. Despite a challenging retail environment, American Eagle delivered strong results by leaning into its brand identity and executing smart marketing plays that clearly resonated with younger audiences.

CEO Comments Confirm the Data

CEO Jay Schottenstein credited the impressive quarter to increased brand awareness, strong campaign performance, and rising customer engagement. He said:

“We have seen an uptick in customer awareness, engagement and comparable sales.”

He specifically highlighted the success of campaigns featuring Sydney Sweeney and Travis Kelce, noting that the company gained 700,000 new customers and that store and online traffic remained consistently strong throughout August.

This directly aligns with the alternative data we tracked weeks prior - proving once again that alternative data is a leading indicator of business momentum and stock price movement.

What Investors Should Watch Next

With American Eagle enjoying newfound relevance among younger shoppers and trending on social media, the question now is: Can they sustain this momentum?

Here’s what investors should monitor going forward:

• Sustained Engagement
  Track ongoing growth in followers, engagement rates, and social media sentiment.
• Web Traffic Trends
  Continued increases in website visitors will signal conversion of interest into shopping behavior.
• New Campaigns
  Future partnerships or influencer campaigns could further boost the brand.
• Holiday Season Prep
  Watch for hiring trends, promotional strategies, and early Black Friday indicators.
• AI Score Changes
  Our AI Score updates in real time based on all these insights. It remains a key signal to watch.

The Takeaway

American Eagle’s recent stock surge is yet another proof point for how powerful alternative data can be when harnessed correctly. By combining digital signals like social media growth, web traffic, and sentiment analysis, we spotted the company’s rising popularity well before the earnings announcement or price reaction.

Members who acted on our August 13 buy signal have already seen 25%+ returns, and this is exactly why we built AltIndex - to help everyday investors find opportunities before the market fully prices them in.

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