With a market cap of $3.23 billion and a current price of $16.38, American Eagle Outfitters Inc (AEO, Financial) has been making waves in the stock market. Over the past week, the company's stock price has seen a gain of 10.42%, and over the past three months, it has surged by an impressive 42.61%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of AEO stands at $16.9, slightly lower than its past GF Value of $17.02 three months ago. This indicates that the stock is 'Fairly Valued', a significant improvement from its 'Significantly Undervalued' status three months ago.
Company Overview: American Eagle Outfitters Inc
American Eagle Outfitters Inc is a key player in the Retail - Cyclical industry. The company operates stores in the U.S., Canada, Mexico, and Hong Kong, and also has a robust online business that ships worldwide. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel and accessories for women and men. The vast majority of its revenue is generated from the United States. 
Profitability Analysis
With a Profitability Rank of 7/10, American Eagle Outfitters Inc demonstrates a high level of profitability. The company's Operating Margin of 6.43% is better than 65.65% of 1115 companies in the same industry. Furthermore, its ROE of 13.13%, ROA of 5.79%, and ROIC of 7.53% are better than 70.68%, 70.7%, and 67.05% of companies respectively. The company has also maintained profitability for 9 out of the past 10 years, which is better than 71.06% of 1047 companies. 
Growth Prospects
Despite its strong profitability, American Eagle Outfitters Inc has a relatively low Growth Rank of 2/10. The company's 3-Year Revenue Growth Rate per Share of -1.20% and 5-Year Revenue Growth Rate per Share of 2.30% are better than 36.35% and 50.97% of companies respectively. However, the company's future 3-year to 5-year total revenue growth rate estimate of 3.66% is better than 38.68% of 243 companies. The company's 3-Year EPS without NRI Growth Rate of -17.00% is better than 20.27% of 829 companies. 
Top Holders of American Eagle Outfitters Inc
Ken Fisher (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), and Jeremy Grantham (Trades, Portfolio) are the top three holders of American Eagle Outfitters Inc's stock. Ken Fisher (Trades, Portfolio) holds 2,193,540 shares, representing 1.11% of the company's stock. Lee Ainslie (Trades, Portfolio) holds 292,763 shares, accounting for 0.15% of the stock, while Jeremy Grantham (Trades, Portfolio) holds 234,719 shares, representing 0.12% of the stock.
Competitive Landscape
American Eagle Outfitters Inc faces stiff competition from Urban Outfitters Inc (URBN, Financial) with a market cap of $3 billion, Abercrombie & Fitch Co (ANF, Financial) with a market cap of $2.8 billion, and Carter's Inc (CRI, Financial) with a market cap of $2.58 billion.
Conclusion
In conclusion, American Eagle Outfitters Inc's stock performance has been impressive, with a significant surge over the past three months. The company's high profitability rank and strong operating margin, ROE, ROA, and ROIC indicate a robust financial health. However, its low growth rank suggests that there may be challenges in sustaining this growth. The company's stock is held by top investors like Ken Fisher (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), and Jeremy Grantham (Trades, Portfolio), which adds to its credibility. Despite facing competition from companies like Urban Outfitters Inc, Abercrombie & Fitch Co, and Carter's Inc, American Eagle Outfitters Inc has managed to carve a niche for itself in the Retail - Cyclical industry.
