American Eagle Has 24% Upside on Aerie Becoming a $2 Billion Business

American Eagle Outfitters (NYSE: AEO) continues to soar to new heights on the strength of its Aerie lingerie and loungewear brand. The fast-growing apparel business is expected to see double-digit sales growth again when the retailer reports fourth-quarter earnings next week, and Cowen analyst Oliver Chen upgraded his outlook on the retailer to outperform from market perform because he sees Aerie hitting $2 billion in sales within three years. Wall Street was already bullish on Aerie's growth, with one analyst estimating the lingerie outfit could be a $3 billion business in five years.