American Eagle Outfitters Inc. (AEO) is making a strong comeback in the denim market with a successful second-quarter fiscal 2025 performance. Their fall “Great Jean” campaign featuring Sydney Sweeney set records for customer acquisition, generating over 40 billion impressions and boosting store and online traffic. AEO’s focus on inclusive denim styles and pricing strategies has resonated well with consumers, leading to positive sentiment and increased purchase intent.

AEO’s stock has gained 1.8% year-to-date, outperforming the industry average decline of 18.4%. With a Zacks Rank #2 (Buy), AEO is trading at a lower forward price-to-earnings ratio compared to the industry average. The Zacks Consensus Estimate for AEO’s fiscal 2025 earnings suggests a decline of 36.2% year-over-year, but fiscal 2026 earnings are expected to rise by 22.4%.

In the retail sector, Boot Barn Inc. (BOOT) and Amazon.com Inc. (AMZN) are also showing strong growth potential. Boot Barn has a Zacks Rank of 1 (Strong Buy) and is expected to see sales and earnings growth. Amazon, with a Zacks Rank of 2, is projected to experience significant sales and earnings growth. Additionally, Capri Holdings Limited (CPRI) has a Zacks Rank of 2 and is showing growth in earnings despite a decline in sales.

Zacks Research has identified a top stock with the potential to double in value in the coming months. This little-known satellite-based communications firm is poised to benefit from the growing space industry, with analysts forecasting a major revenue breakout in 2025. While not all picks are winners, this stock has the potential to surpass previous Zacks’ Stocks Set to Double like Hims & Hers Health.

Read more at Nasdaq: American Eagle’s Denim Dominance Returns: Will Global Growth Follow?