Are General Cable Corporation (BGC) and American Eagle Outfitters (AEO) Both Worth Investing In At This Time?
New York, NY – GDP INSIDER – 03/19/2015.
This article discusses two companies: General Cable Corporation (NYSE:BGC) and American Eagle Outfitters (NYSE:AEO)
General Cable Corporation (NYSE:BGC) corrected downwards yesterday reversing some of the sharp gains made on Tuesday, with the stock closing down 5.92% or $1.05 at $16.68 on heavy trading of 3.320 million shares compared to its three month average trading volume of 0.840 million. The manufacturer and distributor of copper, aluminum and fiber optic wire rose 21.27% on Tuesday after speculation that Prysmian SPA (ADR) (OTCMKTS:PRYMY) is planning to make a bid to acquire the company. The rally pushed the RSI of the shares over 70 and prompted the correction yesterday, as many investors decided that the share price had become over inflated. Despite yesterday’s decline, the stock price is still trading up 12% for the year so far and if the rumors turn out to be true, then the stock could easily start rallying again. With negative quarterly revenue growth of 6.9% and EPS of -$12.86 the stock is a gamble if the buyout is just a rumor.
American Eagle Outfitters (NYSE:AEO) fell back slightly yesterday after hitting a new 52 week high of $17.40 on Tuesday, with the stock closing down 0.23% or $0.04 at $17.04 on light trading of 3.469 million shares, compared to its three month average trading volume of 4.638 million. The apparel and accessories retailer has been riding high of late, with its products sales increasing as its popularity grows and strong fourth quarter fiscal results. American Eagle Outfitters also recently announced plans to further consolidate its position with increased product options, store rationalization strategies and more stringent inventory management. With a strategy of opening more stores worldwide, the company is positioning itself for further strong growth and management has forecast that earnings in the first quarter of 2015 will be between $0.09 and $0.12 compared to $0.02 for the same quarter last year. If American Eagle Outfitters can maintain its current sales growth, it is a hold with great buy potential.
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