American Eagle Stock Soars on Trump Endorsement and Sydney Sweeney Ad Campaign
American Eagle Outfitters (AEO) shares surged 19% following a Truth Social post by former President Donald TRUMP praising the retailer's new ad campaign featuring Sydney Sweeney. The political undertones of Trump's endorsement—including his reference to Sweeney as a registered Republican—introduce potential polarization risks for the brand.
Despite the controversy, fundamentals appear strong. The $1.9 billion company trades at under 10x earnings with $212 million in free cash flow. Analysts project 2024 earnings could double to $1.68 per share before moderating.