American Eagle Outfitters' Stock Price Down Amid MACD Death Cross, KDJ Death Cross

American Eagle Outfitters' 15-minute chart has triggered a MACD Death Cross and a KDJ Death Cross, which occurred on September 30, 2025 at 10:15. This suggests that the stock price has the potential to continue its downward trajectory, as the momentum of the stock price is shifting towards the downside and may lead to further decreases.

American Eagle Outfitters, Inc. (AEO) has recently seen a significant shift in its stock price momentum, as indicated by the occurrence of a MACD Death Cross and a KDJ Death Cross on September 30, 2025, at 10:15. These technical indicators suggest a potential continuation of the downward trend in the stock price, signaling a shift in momentum towards the downside. This development follows a period of strong financial performance for the retailer, which has seen robust growth in revenues and earnings per share.

In the second quarter of fiscal 2025, AEO reported $1.28 billion in revenues, its second-highest second-quarter performance ever, with earnings per share climbing 15% year over year to 45 cents Can AEO's Brand Buzz & Store Revamp Keep the Momentum Going?^[1]. The company's strategy of reshaping its store footprint, opening new locations, and remodeling existing ones has been aimed at keeping pace with changing shopping habits and digital channels. Additionally, AEO has been successful in driving growth through product innovation, cultural marketing, and strategic collaborations, such as those with Sydney Sweeney and Travis Kelce, which have generated significant brand buzz and customer engagement.

Despite the recent technical indicators suggesting a potential downward trend, AEO's management remains confident in the company's ability to balance shareholder value creation with strategic reinvestment. The company has returned significant capital to shareholders through dividends and share repurchases, with $276 million distributed year to date, including a $200 million accelerated buyback program earlier this year Can AEO's Brand Buzz & Store Revamp Keep the Momentum Going?^[1]. With cash reserves of $127 million and liquidity of around $400 million, AEO is well-positioned to navigate potential challenges.

However, the current earnings estimates and revenue projections indicate a potential slowdown in growth. For the current quarter, the consensus earnings estimate is $0.42 per share, pointing to a change of -12.5% from the year-ago quarter. The Zacks Consensus Estimate for the current fiscal year is $1.09, indicating a change of -37.4% from the prior year American Eagle Outfitters, Inc. (AEO) is Attracting Investor Attention: Here is What You Should Know^[2]. These revisions suggest that investors should closely monitor the company's performance and the impact of external factors, such as tariffs, which are expected to weigh on costs by $70 million Can AEO's Brand Buzz & Store Revamp Keep the Momentum Going?^[1].

In conclusion, while American Eagle Outfitters has shown strong financial performance and strategic growth initiatives, the recent technical indicators signal a potential downward trend in the stock price. Investors should carefully consider the implications of these indicators and monitor the company's performance closely.