Here's Why Urban Outfitters (URBN) Gained But Lagged the Market Today
Urban Outfitters (URBN) ended the recent trading session at $39.10, demonstrating a +0.46% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.76%. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 1.12%.
The clothing and accessories retailer's shares have seen an increase of 9.05% over the last month, surpassing the Retail-Wholesale sector's gain of 1.32% and the S&P 500's gain of 2.5%.
The investment community will be paying close attention to the earnings performance of Urban Outfitters in its upcoming release. The company is slated to reveal its earnings on February 27, 2024. The company is predicted to post an EPS of $0.71, indicating an 82.05% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.49 billion, up 7.44% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.25 per share and revenue of $5.15 billion. These totals would mark changes of +85.71% and +7.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Urban Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.08% higher within the past month. Right now, Urban Outfitters possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Urban Outfitters is currently trading at a Forward P/E ratio of 11.96. This valuation marks a discount compared to its industry's average Forward P/E of 15.24.
Investors should also note that URBN has a PEG ratio of 0.66 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 100, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
