NEW YORK (TheStreet) -- Shares of American Eagle Outfitters (AEO) are higher by 1.08% to $13.12 in pre-market trading on Thursday, as the stock continues to gain from its 2014 second quarter earnings beat.
The teen apparel and accessories retailer posted net income of $5.8 million, or three cents per share, on revenue of $710.6 million.
Analysts polled by Thomson Reuters expected American Eagle to post breakeven earnings on revenue of $689.9 million.
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Additionally, American Eagle was upgraded to "buy" from "neutral" at Janney Montgomery.
The firm said it raised its rating on the company as it believes inventory levels have stabilized and American Eagle is paying an "attractive" dividend yield of 4%.
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