Why American Eagle Outfitters (AEO) Stock Continues To Surge Today

NEW YORK (TheStreet) --  Shares of American Eagle Outfitters (AEO) are higher by 10.44% to $12.80 on heavy trading volume on Wednesday afternoon.

So far, 23.71 million shares of American Eagle exchanged hands as compared to its average daily volume of 4.22 million shares.

The teen apparel retailer posted better than expected earnings for the 2014 second quarter, with net income of $5.8 million, or three cents per share, versus the breakeven expectations of analysts polled by Thomson Reuters.
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American Eagle said revenue dropped by 2% to $710.6 million compared to the 2013 second quarter, while analysts were expecting revenue of $689.9 million for the most recent quarter.

Separately, TheStreet Ratings team rates AMERN EAGLE OUTFITTERS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMERN EAGLE OUTFITTERS INC (AEO) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."

You can view the full analysis from the report here: AEO Ratings Report

AEO Chart AEO data by YCharts

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