American Eagle Outfitters, Inc. (NYSE:AEO) is one of the 20 Stocks Jim Cramer Wanted You To Sell & Immediately Get Out Of. American Eagle Outfitters, Inc. (NYSE:AEO) is a well-known American apparel company. Its shares are up by 64% over the past year and are down by 29% year-to-date.
Most of the stock's gains occurred before Cramer discussed it in October. For instance, American Eagle Outfitters, Inc. (NYSE:AEO) closed 38% higher on September 3rd as the firm reported its second-quarter earnings report. The reports saw its revenue of $1.28 billion and earnings of $0.45 beat analyst estimates of $1.24 billion and $0.21.
However, 2026 has been a tough year for American Eagle Outfitters, Inc. (NYSE:AEO)'s shares. They closed 13.90% lower on March 5th. On the 4th, the firm had reported its fourth-quarter earnings.
The results saw American Eagle Outfitters, Inc. (NYSE:AEO) post $1.76 billion in revenue and $0.84 in adjusted earnings per share to beat analyst estimates. However, the report also saw the firm's operating margin drop to 5.4% from an earlier 8.9%. Here is what Cramer had said about American Eagle Outfitters, Inc. (NYSE:AEO) in October 2025: Top 20 Brands Among Gen Z in the US by Mindshare "My instinct is to ring the register.
Because we had the event, the event occurred, and now we're getting away from the event. And there are a lot of people who say, wait a second, the company isn't doing well away from that. I'd like to see [you] get a bit of a win here.
Take some off the table." While we acknowledge the potential of AEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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