American Eagle Outfitters, Inc. (NYSE:AEO) is one of the 10 Best Small-Cap Stocks to Buy According to Billionaires, with UBS reiterating its “Buy” rating and a price target of $19 on July 10. The investment firm sees potential in the company’s Aerie brand as a key driver of future growth.

UBS expects Aerie to fuel “surprising top-line growth” for American Eagle Outfitters, Inc. (NYSE:AEO), projecting a 10% compound annual growth rate for earnings per share over the next five years. The firm also anticipates the stock’s price-to-earnings ratio returning to its past five-year mean.

Following retail bus tour store visits in Chicago with American Eagle Outfitters, Inc.’s (NYSE:AEO) management, UBS maintains a positive outlook on the company. The multinational specialty retailer offers clothing, accessories, and personal care products under its American Eagle and Aerie brands.

While American Eagle Outfitters (AEO) shows promise as an investment, UBS suggests considering AI stocks for greater potential upside with lower downside risk. For more information on undervalued AI stocks and their benefits from Trump-era tariffs, check out the free report from Insider Monkey.

Read more at Yahoo Finance: UBS Stays Positive on American Eagle Outfitters (AEO), Keeps Buy Rating