Aeropostale, Inc. ($ARO) Confident Investor Rating: Poor

Company name Aeropostale, Inc.
Stock ticker ARO
Live stock price [stckqut]ARO[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $6.79
Target stock price (averages with growth) $8.83
Target stock price (averages with no growth) $9.05
Target stock price (manual assumptions) $14.12

The following company description is from Google Finance: http://www.google.com/finance?q=aro

Aeropostale, Inc., (Aeropostale) 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 4 to 12 year-old kids through its P.S. from Aeropostale stores. P.S. from Aeropostale products can be purchased in P.S. from Aeropostale stores, in certain Aeropostale stores, and online at www.ps4u.com. As of January 28, 2012, it operated 986 Aeropostale stores, consisting of 918 stores in 50 states and Puerto Rico, 68 stores in Canada, as well as 71 P.S. from Aeropostale stores in 20 states. In addition, pursuant to a licensing agreement, it operated 14 Aeropostale and P.S. from Aeropostale stores in Middle East and South East Asia. During March 2011, it announced that it had signed a second licensing agreement. The licensee to this agreement is focused to open approximately 30 stores in stores in Turkey over the next five years.

 

Confident Investor comments: Aeropostale has not been able to perform well compared to their previous years. I am removing this stock from my Watch List. At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock until the company can fix its performance.

 

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