Aeropostale, Inc. ($ARO) Possible Buy to $13 Confident Investor Rating: Good

Company name Aeropostale, Inc.
Stock ticker ARO
Live stock price [stckqut]ARO[/stckqut]
P/E compared to competitors Good
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $5.71
Target stock price (averages with growth) $10.46
Target stock price (averages with no growth) $13.43
Target stock price (manual assumptions) $12.42

The following company description is from Google Finance:

Aeropostale, Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 7 to 12 year-old kids through its P.S. from Aeropostale stores. The Company designs, sources, markets and sells all of its own merchandise. P.S. from Aeropostale products can be purchased in P.S. from Aeropostale stores, in certain Aeropostale stores, including its new Times Square store in New York City and online at As of January 29, 2011, it operated 965 Aeropostale stores, consisting of 906 stores in 49 states and Puerto Rico, 59 stores in Canada, as well as 47 P.S. from Aeropostale stores in 13 states. In addition, pursuant to a Licensing Agreement, one of its international licensees operated 10 Aeropostale stores in the United Arab Emirates as of January 29, 2011. During March 2011, it announced that it had signed a second licensing agreement.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock. This stock is currently way undervalued, in my opinion. Even the price target that I have currently picked ($12.42) is probably too low. 6 months ago it was trading over $24 and 3 months ago it was over $17. I realize that there is some concern about the Christmas season and I tried to factor that into my price target but this is a much better company than its short-term stock price is showing.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.