Actress Sydney Sweeney is the new face of American Eagle Outfitters’ (AEO) Fall 2025 ad campaign — and it’s already generating major online buzz, with the brand trending on X throughout the weekend. The campaign’s cheeky slogan, “Sydney Sweeney has great jeans,” sparked mixed reactions. Some users praised the clever wordplay, while others—particularly on the political left—criticized the double entendre of “jeans” and “genes” as being in poor taste.
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Predictably, the backlash fueled support from many on the political right, who rallied behind the campaign. Regardless of where one stands in the online discourse, the ad has clearly succeeded in capturing attention. And if you buy into the P.T. Barnum school of thought, it’s a textbook case of “no such thing as bad publicity.”
The surge in attention could prove beneficial for both American Eagle’s business and its stock. In fact, some online chatter has even speculated that the brand might become the next meme stock—a viral favorite propelled by social media buzz rather than traditional metrics like valuation or fundamentals. That said, the encouraging part about American Eagle is that it doesn’t need meme status to be a compelling investment.
I’m Bullish on American Eagle for a few key reasons: the company is profitable, the stock is attractively priced, and it offers a generous dividend yield of over 4%. On top of that, American Eagle already resonates with Gen Z consumers—and the latest ad campaign could deepen that connection. So let’s take a closer look at the stock that’s suddenly at the center of attention.
What is American Eagle Outfitters?
American Eagle Outfitters was founded in 1977 and is based in Pittsburgh, Pennsylvania. In addition to its eponymous American Eagle brand, its brand portfolio also includes Aerie, Todd Snyder, and more. The company operates in the U.S., Mexico, and Canada, and its products are available in over 30 countries worldwide.
Gen Z Favorite
American Eagle continues to resonate strongly with younger consumers. According to a U.S. market survey by Circana, LLC, it holds the top spot in jeans by dollar share among 15–25-year-olds. Meanwhile, its Aerie brand ranks third in intimates for the same age group, and Aerie’s activewear line, OFFL/NE, is the second most popular brand in leggings and third in overall activewear among women aged 15 to 35.
Sydney Sweeney, born in 1997, sits squarely within the Gen Z demographic and enjoys broad appeal among both Gen Z and Millennials. Her connection with these key consumer groups could further strengthen American Eagle’s brand momentum.
As part of the campaign, the company launched a limited-edition Sydney Sweeney denim jacket and a special “Sydney Jean,” featuring a pink butterfly patch to raise awareness about domestic violence. All proceeds from the jeans will go to the Crisis Text Line—a cause that deserves support, no matter one’s stance on the surrounding discourse.
Clearance Rack Valuation
Unlike many meme stocks or those hoping to become one, American Eagle isn’t selling hype—it’s selling results. The company is solidly profitable, generating $196.7 million in net income over the past 12 months. Even more compelling, the stock is trading at a bargain valuation relative to those earnings. It’s priced at under 15x projected earnings for January 2026, a notable discount compared to the S&P 500’s forward multiple of around 22.5x.
Looking ahead, analysts expect earnings to climb from $0.80 in fiscal 2026 to $1.18 in fiscal 2027, putting the forward P/E at just 10x based on those estimates. Of course, long-term forecasts carry more uncertainty, but any way you slice it, American Eagle looks like a fundamentally cheap stock.
American Eagle’s Attractive Dividend
American Eagle isn’t just a profitable and attractively valued stock—it’s also a dividend payer, offering a generous 4.44% yield, more than three times that of the S&P 500.
That said, while the yield is appealing, conservative income investors should note that American Eagle hasn’t had the most consistent track record when it comes to dividend growth. The company suspended its dividend in 2022 in the wake of the COVID pandemic. It resumed payouts in 2023, but at a reduced rate—cutting its quarterly dividend from $0.18 to $0.10 per share. In 2024, the company regained some stability and raised the dividend to $0.125 per share, where it remains today.
Beyond dividends, American Eagle is also returning value to shareholders through stock buybacks. In the first quarter of 2025 alone, the company returned $253 million via a combination of dividends and share repurchases.
Is American Eagle a Good Stock to Buy?
Turning to Wall Street, AEO earns a Hold consensus rating based on one Buy, eight Holds, and two Sell ratings assigned in the past three months. AEO’s average stock price target of $11.30 implies less than 1% upside potential over the coming year.
American Eagle is More Than Just Hype
In conclusion, what makes American Eagle compelling isn’t just the buzz from its Sydney Sweeney campaign—it’s that the company doesn’t need meme stock status for its shares to climb. I’m Bullish because of the stock’s attractive valuation, its solid 4.44% dividend yield, and its strong connection with younger consumers. The heightened visibility from the Sweeney campaign could strengthen that relationship even further, and if it also draws interest from meme stock traders, that’s simply an added bonus.