Recent Coronavirus fears coupled with a slew of headwinds have driven American Eagle Outfitters (AEO) stock to exceptionally low levels. In essence, my thesis does not revolve around discrediting the headwinds present but rather that the assumptions currently priced in are overdone, with implicit assumptions pricing the stock for bankruptcy. From a valuation perspective, I believe the stock is extremely cheap at current levels.

American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. They currently operate in 3 main segments:

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