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American Eagle Outfitters has caught the market’s attention after the company’s latest earnings exceeded expectations on both revenue and profit. The brand’s Sydney Sweeney campaign is getting credit for boosting investor interest and sales growth.

See our latest analysis for American Eagle Outfitters.

American Eagle’s share price has been on a hot streak, jumping 20% in the past month and delivering a 58% gain over the last 90 days, as upbeat earnings and the Sydney Sweeney campaign have reinvigorated momentum. While the 1-year total shareholder return of 10% is not as eye-catching, recent trends suggest growing investor confidence, especially as institutional buyers and analysts show increased interest in its growth story.

If American Eagle’s recent run has you interested in what else could be taking off, it’s a great moment to explore fast growing stocks with high insider ownership

With American Eagle’s shares surging and momentum building, investors are now debating a critical question: is the current price an entry point for further gains, or is all the future growth already reflected in the stock?

At $20.40, American Eagle Outfitters is trading well above the fair value estimate of $16.44 set by the most widely followed narrative. The gap between valuation and market enthusiasm prompts investors to consider the sustainability of this rally.

The analysts have a consensus price target of $15.167 for American Eagle Outfitters based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $21.5, and the most bearish reporting a price target of just $10.0.

Read the complete narrative.

What if the crowd is wrong? The valuation depends on significant changes in future margin forecasts, ambitious profit assumptions, and a strongly debated multiple that could surprise even experienced investors. The calculations behind the forecast involve some unusual factors. See what is driving these projections.

Result: Fair Value of $16.44 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, ongoing consumer uncertainty and rising tariffs remain notable risks that could quickly shift the outlook for American Eagle Outfitters in the future.

Find out about the key risks to this American Eagle Outfitters narrative.

Stepping away from price targets, our DCF model offers a longer-term take. Using projected cash flows, the SWS DCF model suggests fair value is much lower, at just $11.04 per share. This is well below both market price and analyst targets. This raises questions about whether recent optimism can last.

Look into how the SWS DCF model arrives at its fair value.

If you want to see the numbers for yourself or take a different approach, you can easily craft your own American Eagle Outfitters narrative in under three minutes. Do it your way

A great starting point for your American Eagle Outfitters research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Smart investors know the next breakout stock can be found where the crowd isn’t looking. Use the powerful Simply Wall Street Screener to unlock unique opportunities before they hit the headlines.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AEO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

TJX Companies (TJX) delivered a strong third-quarter earnings report, easily outpacing sales and profit expectations for fiscal 2026. The company followed up by raising its full-year sales and earnings forecasts, which signals management’s confidence in ongoing growth and market share gains.

See our latest analysis for TJX Companies.

TJX shares recently hit a new all-time high, reflecting a wave of investor optimism after the company beat estimates and raised its outlook for the year. The momentum is clear in the numbers, with a share price return of 25.4% year-to-date and a one-year total shareholder return of 22.4%, compounded by an impressive 97.5% over three years. With upbeat earnings and rising investor confidence, TJX is showing strong signs of durable long-term growth.

If TJX’s market momentum has you thinking bigger, now’s the perfect time to broaden your horizons and explore fast growing stocks with high insider ownership

With TJX shares pushing to fresh highs, investors face a pressing question: does the stock have further room to run, or has upbeat performance led the market to already price in sustained earnings growth?

With TJX Companies’ last close of $151.92 and the most-followed narrative fair value at $159.16, market consensus suggests there is still some upside for the stock based on updated business momentum.

The company’s strong portfolio of brands and ability to adjust pricing across nearly all categories have allowed it to maintain value proposition scores, supporting customer loyalty in a dynamic retail environment.

Read the complete narrative.

Want to know the secret behind this premium valuation? There is a delicate mix of ambitious earnings forecasts, margin improvements, and bold assumptions for future growth. Click through to uncover what figures drive this narrative’s punchy price target and just how bullish those projections really are.

Result: Fair Value of $159.16 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, risks remain. An accelerating shift to e-commerce or changes in sourcing dynamics could dampen TJX’s future growth story and margin outlook.

Find out about the key risks to this TJX Companies narrative.

Looking through a different lens, TJX shares are trading at a price-to-earnings ratio of 33x. This is much higher than the US Specialty Retail industry average of 18x and the peer group at 20.2x. The market’s fair ratio points to 21x, so today’s valuation carries added risk if expectations slip. Does this premium suggest the stock has already run too far ahead?

See what the numbers say about this price — find out in our valuation breakdown.

If you want to dig deeper or see the story through your own lens, crafting a personal narrative only takes a few minutes. Do it your way

A great starting point for your TJX Companies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Don’t let opportunity pass you by. Set yourself up for investing success by checking out unique stocks beyond TJX. There’s a world of potential to capture right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TJX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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During the Thanksgiving-shortened week, the Dow Jones Industrial Average jumped more than 3%, the S&P 500 surged nearly 4%, and the Nasdaq leapt more than 4%.

That’s after selling off sharply earlier this month on fears that the AI bubble will burst and hints that the Federal Reserve won’t cut interest rates as much as anticipated.

“Santa’s back,” market veteran Ed Yardeni declared in a note on Saturday.

But panic-selling of bitcoin, which he and others on Wall Street have said was a factor in the earlier downturn, has subsided, and stocks are poised for a year-end rally.

Yardeni backed his view that the S&P 500 will hit 7,000 by the end of the year and suggested the broad market index could even reach that milestone in the coming week.

If that happens, the S&P 500 will finish 2025 with a 19% gain, following surges of more than 20% in each of the past two years.

And the market could still post double-digit advances from there. Earlier in the week, Yardeni reaffirmed his forecast for the index to soar to 7,700 in 2026, indicating a 10% increase from his 2025 view.

“We expect that 2026 will be just another year of the Roaring 2020s, which remains our base-case scenario,” he wrote. “Our Roaring 2020s scenario has had a good six-year run since we first predicted it in 2020.”

GDP growth, consumption and corporate profits have been chugging along, and Yardeni said the decade should avoid an economy-wide recession, while “rolling recessions” may hit different industries at different times.

Deutsche Bank is even more bullish and predicted the S&P 500 will finish next year at 8,000, representing a 17% jump from Friday’s close.

“We see equities continuing to benefit from the cross-asset inflows boom,” analysts wrote in a note. “With earnings continuing to rise and companies indicating they are sticking with their capital allocation plans we expect robust buybacks to continue.”

Elsewhere, JPMorgan expects the S&P 500 to end 2026 at 7,500, but added that it could go to 8,000 if the Federal Reserve keeps cutting rates.

Analysts cited above-trend earnings growth, the AI capital spending boom, rising shareholder payouts, and fiscal policy easing via tax cuts in President Donald Trump’s One Big Beautiful Bill Act.

And if inflation cools more than anticipated, that would clear the way for extra Fed rate cuts beyond the two addition reductions JPMorgan sees.

“More so, the earnings benefit tied to deregulation and broadening AI-related productivity gains remain underappreciated,” the bank said.

Airbus said Friday that an examination of the JetBlue incident revealed that intense solar radiation may corrupt data critical to the functioning of flight controls on the A320 family of aircraft.

The FAA joined the European Union Aviation Safety Agency in requiring airlines to address the issue with a new software update. More than 500 U.S.-registered aircraft will be impacted.

The EU safety agency said it may cause “short-term disruption” to flight schedules. The problem was introduced by a software update to the plane’s onboard computers, according to the agency.

Airbus CEO Guillaume Faury apologized to customers after the required fix led to “significant logistical challenges and delays.”

“Our teams are working around the clock to support our operators and ensure these updates are deployed as swiftly as possible to get planes back in the sky and resume normal operations, with the safety assurance you expect from Airbus,” he wrote in a message posted on LinkedIn on Saturday.

Thanksgiving disruptions in US

In Japan, All Nippon Airways, which operates more than 30 planes, canceled 65 domestic flights for Saturday. Additional cancellations on Sunday were possible, it said.

The software change comes as U.S. passengers were beginning to head home from the Thanksgiving holiday, which is the busiest travel time in the country.

American Airlines has about 480 planes from the A320 family, of which 209 are affected. The fix should take about two hours for many aircraft and updates should be completed for the overwhelming majority on Friday, the airline said.

On Saturday, the airline said in a statement that only four planes still needed to be updated and that it “expects no further operational impact.”

Air India said on X that its engineers were working on the fix and completed the reset on more 40% of aircraft that need it. There were no cancellations, it said.

Delta said it expected the issue to affect less than 50 of its A321neo aircraft. United said six planes in its fleet are affected and it expects minor disruptions to a few flights. Hawaiian Airlines said it was unaffected.

Pope’s plane also needs a software fix

Pope Leo XIV is on his inaugural foreign trip, to Turkey and Lebanon, and is flying along with the papal delegation and press corps aboard an ITA Airways Airbus A320neo charter.

The Vatican spokesman, Matteo Bruni, said Saturday that ITA was working on the issue. He said the necessary component to update the aircraft was on its way to Istanbul along with the technician to install it. Leo was scheduled to fly from Istanbul, Turkey to Beirut, Lebanon on Sunday afternoon.

European flights return to normal

In France, Transport Minister Philippe Tabarot said the situation has stabilized as several software updates had already been installed. He told BFM-TV that the impact was limited in the country with an “almost complete return to normal in French airports.”

In the U.K., disruption also was minimal. British Airways, for example, said only three of its aircraft required the update, while EasyJet indicated there may be changes to its flying schedule as a result of the update, in which case passengers will be informed.

Germany’s Lufthansa said most software updates were completed during the night and on Saturday morning. No Lufthansa Group Airlines flights are expected to be canceled due to the current situation, but there may be minor delays over the weekend, it said.

Scandinavia’s SAS said its flights were operating as normal Saturday, after teams worked overnight to install the required software.

Mike Stengel, a partner with the aerospace industry management consulting firm AeroDynamic Advisory, said the fix could be addressed between flights or on overnight plane checks.

“Definitely not ideal for this to be happening on a very ubiquitous aircraft on a busy holiday weekend,” Stengel said from Ann Arbor, Michigan. “Although again the silver lining being that it only should take a few hours to update the software.”

At least 15 JetBlue passengers were injured and taken to the hospital after the Oct. 30 incident on board the flight from Cancun, Mexico, to Newark, New Jersey. The plane was diverted to Tampa, Florida.

Airbus, which is registered in the Netherlands but has its main headquarters in France, is one of the world’s biggest airplane manufacturers, alongside Boeing.

The A320 is the primary competitor to Boeing’s 737, Stengel said. Airbus updated its engine in the mid-2010s, and planes in this category are called A320neo, he said.

The A320 is the world’s bestselling single-aisle aircraft family, according to Airbus’ website.

___

Associated Press writers Mari Yamaguchi in Tokyo, Jennifer Kelleher in Honolulu, Geir Moulson in Berlin, Samuel Petrequin, Pan Pylas in London and Nicole Winfield in Istanbul contributed to this report.

US retail sales on Black Friday, the busiest shopping day of the year, climbed 4.1% compared with last year, according to data released Saturday by Mastercard SpendingPulse. Online shoppers alone spent $11.8 billion, up 9.1% from 2024, according to data collection platform Adobe Analytics.

But those gains don’t account for higher prices due to inflation, so actual spending could be flat.

“We have 3% inflation, so maybe (the 4.1% increase in spending) is a real increase of just 1% or so, which is not that much of an increase,” Rick Newman, who writes The Pinpoint Press, a newsletter on the US economy, told CNN on Friday.

There’s also a bifurcation in who’s spending. The Federal Reserve’s most recent Beige Book, a collection of anecdotes about the economy, showed consumer spending among low- and middle-income consumers is on the decline. Meanwhile, the Fed found high-end consumers are continuing to spend — including on luxury items and travel.

Consumers have bought fewer items this holiday season, but the average selling prices are higher, according to Claudia Lombana, a national consumer expert.

“The ones that have higher income are spending at will, but those who are less affluent are budgeting,” Lombana told CNN’s Omar Jimenez on Saturday.

It’s part of the so-called K-shaped economy, in which higher earners get a boost from their stock market investments and home valuations and use their fatter paychecks to spend. But lower earners increasingly live paycheck to paycheck and look for discounts — or curtail their spending to cope with rising prices.

“The story of the economy right now is it’s a bifurcated economy. If you’re lucky enough to own stocks and own a home, you’re part of the upper slant of that cave, that K-shaped economy … you’re going to be comfortable spending a fair amount of money this year,” Newman said.

But Newman added that people on the lower slant of the K — those who don’t own stocks or a home — are increasingly worried about job security.

“I think those people are going to be pinching pennies this holiday season,” he said, adding that they will be more frugal with gift purchases and necessities. Heating bills, for instance, are higher because of natural gas prices going up. And grocery prices are on the rise, while rent hikes outpace income growth, he noted.

Eighty-five percent of consumers expect higher prices because of President Donald Trump’s tariffs, according to the National Retail Federation, or NRF. And it’s a factor in how they shop.

“Nobody is sort of going on an item-by-item basis and saying, ‘Oh, the Trump tariffs have pushed up costs here by 4% or 10%,’ but it’s on people’s minds,” Newman said.

Value is more important than ever these days for consumers. Consumer sentiment is glum, job growth has slowed, and the federal government shutdown forced low-income shoppers to pull back spending amid a pause in Supplemental Nutrition Assistance Program funding.

As goods and services become harder for everyday Americans to afford, shoppers have grown pickier about how they spend their money and hunt for deals. They are gravitating toward retailers they feel can help them stretch their dollars further on groceries, household essentials, clothing and electronics.

Chains such as Walmart, TJ Maxx, Gap and others are benefiting, reporting strong sales during their latest quarters. Walmart is now gaining market share against competitors across all income groups and in several merchandise categories.

But others, such as Target and Bath & Body Works, are struggling.

And people are splurging less on gifts for themselves, according to Bath & Body Works.

Shoppers are expected to continue to splash out this holiday season, despite the cost-of-living squeeze and other economic pressures. The NRF expects retail sales in November and December to grow 3.7% to 4.2% compared with a year ago. That growth would be similar to last year’s rise.

The NRF projects a record $1 trillion in holiday spending this year, up from $976 billion last year.

Spending growth on apparel grew 6.1% online and 5.4% in-store on Black Friday, with Mastercard suggesting that “shoppers refreshed wardrobes while leaning into value-driven choices and convenience.” Consumers spent a record $6.4 billion online on Thanksgiving, up 5.3% from a year ago, according to Adobe Analytics, as big deals drew them to shop online.

“The magnitude of discounts was the big story on Thanksgiving yesterday, as retailers leaned into delivering great deals to drive consumer demand online,” Vivek Pandya, lead analyst at Adobe, said in a statement Friday.

Meanwhile, “buy now, pay later” continues to be an important payment option for consumers this holiday season. Adobe forecasts $20.2 billion will be spent through the payment method from November 1 to December 31, an 11% uptick over 2024.

“We saw half the people in America already shopping by Halloween this year for the holiday period,” said Lombana. “Of course, this five-day period from Thanksgiving Day through Cyber Monday is significant for retailers, both online and in store. We are expecting to see Cyber Monday deliver strong.”

She noted that “consumers are definitely being more cautious, but during the holidays, they also want to engage in the holiday spirit.”

• CoreWeave and Nebius are growing at incredible rates thanks to the booming demand for data center compute.

• Both companies seem set to deliver outstanding growth in the long run thanks to their huge backlogs.

• However, one of these names is trading at a much cheaper valuation than the other one.

• 10 stocks we like better than CoreWeave ›

CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) are two companies that have been growing at an incredible pace owing to their business model. These companies are in the business of building data centers capable of running artificial intelligence (AI) workloads and renting them out to hyperscalers, AI companies, or anyone looking to buy dedicated AI data center capacity.

Formally known as neocloud companies, both CoreWeave and Nebius have seen incredible jumps in their stock prices this year. While CoreWeave is up 84% since its initial public offering (IPO) in late March this year, Nebius stock has shot up a stunning 231% this year. But if you had to choose from one of these two neocloud stocks for your portfolio right now, which one should it be?

Let’s find out.

CoreWeave went public toward the end of March, and it was the biggest tech IPO in the U.S. since 2021. Shares of the company rose impressively over the next few months and hit a high on June 20. However, it has been all downhill for CoreWeave since then, with the stock losing over 60% of its value.

CoreWeave investors got another shock recently after the company released its third-quarter results. Though it reported massive year-over-year growth of 134% in its revenue to $1.36 billion, CoreWeave had to slightly reduce its full-year guidance. It now expects full-year revenue to land at $5.1 billion at the midpoint of its guidance range, down from the earlier estimate of $5.25 billion.

The company had to trim its guidance because of a delay in the delivery of data center capacity by a third-party developer. CoreWeave said that this delay is temporary, and the impacted customer has agreed to maintain the total contract value and has adjusted the delivery schedule. So, this is a short-term impact that CoreWeave should be able to overcome.

Importantly, CoreWeave’s long-term growth story remains intact. That’s evident from the company’s massive revenue backlog of just under $56 billion at the end of the previous quarter. CoreWeave was sitting on a backlog of $15 billion a year ago, so this metric almost quadrupled. The massive leap in CoreWeave’s backlog can be attributed to the ever-growing demand for AI compute capacity.

The company has received massive contracts from Meta Platforms, OpenAI, and other hyperscalers who are looking to purchase AI compute capacity. As a result, CoreWeave is bringing new capacity online at an aggressive pace. It increased its contracted data center power capacity by 600 megawatts (MW) to 2.9 gigawatts in Q3.

Additionally, it brought online 120 MW of new capacity in Q3. CoreWeave had a total active data center capacity of 590 MW at the end of the previous quarter. The contracted capacity makes it clear that CoreWeave is on track to bring online more capacity, and that should allow it to convert its sizable backlog into revenue.

Another thing worth noting here is that CoreWeave has built a diversified customer base. It now has 10 large customers, thereby reducing its reliance on one or two names, and almost all of them have signed multiple contracts with CoreWeave. So, this AI stock seems primed to regain its mojo, and the huge demand for AI computing power should ensure that it keeps growing at a terrific pace in the long run.

Just like CoreWeave, even Nebius is getting massive contracts from customers such as Microsoft and Meta. Though Nebius is a relatively small company when compared to CoreWeave, it can scale up quickly thanks to its recent deals.

The company’s Q3 revenue was up by a whopping 355% year over year to $146 million. The multibillion-dollar contracts that Nebius has signed of late suggest that its remarkable growth is sustainable. Microsoft awarded a deal worth $17.4 billion to $19.4 billion to Nebius in September to purchase AI compute capacity from the latter over a five-year period.

Meta has also joined the company’s client list with a five-year contract valued at $3 billion. Nebius, therefore, is sitting on a revenue backlog of more than $20 billion. Fortunately, Nebius is now going to boost its data center capacity at a faster pace.

The company was earlier expecting to have 1 GW of contracted data center capacity at its disposal by the end of 2026. It has now bumped up that target to 2.5 GW. Even better, Nebius plans on boosting its active data center capacity from an estimated 220 MW at the end of 2025 to a range of 800 MW to 1 GW by the end of next year.

So there is a good chance of Nebius clocking much faster growth in revenue going forward, and that’s what even analysts are expecting from the company.

Clearly, both CoreWeave and Nebius are high-growth companies that can help investors capitalize on the AI infrastructure boom. However, when it comes to choosing one of these stocks, there is a clear winner.

CoreWeave stock trades at a significantly cheaper sales multiple right now. In fact, it can be bought at a discount to the U.S. technology sector’s average price-to-sales ratio of 8.4, despite its stunning growth. Moreover, CoreWeave has a more diversified customer base and a much bigger backlog, while much of Nebius’ growth is currently dependent on just two customers.

Of course, even Nebius can turn out to be a solid investment in the long run, but if you’re looking to choose from one of these two neocloud companies right now, CoreWeave looks like a better buy from a valuation standpoint.

Before you buy stock in CoreWeave, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Better Artificial Intelligence (AI) Stock: CoreWeave vs. Nebius was originally published by The Motley Fool

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