Strength Seen in Urban Outfitters (URBN): Can Its 7.7% Jump Turn into More Strength?
Urban Outfitters URBN shares soared 7.7% in the last trading session to close at $38.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% loss over the past four weeks.
Shares of Urban Outfitters witnessed a rise, following its impressive performance during the holiday season. In the two months ending December 31, 2023, the company reported a significant 10% increase in total net sales year-over-year. This surge in revenue can largely be attributed to an 8% growth in the total Retail segment net sales, along with a 6% increase in comparable Retail segment net sales. A crucial factor in this success was the robust performance of the digital channels, which showed high-single-digit growth. Moreover, there was a steady rise in sales from physical retail stores, contributing to the overall positive financial outcomes
This clothing and accessories retailer is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +64.1%. Revenues are expected to be $1.46 billion, up 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Urban Outfitters, the consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on URBN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Urban Outfitters is part of the Zacks Retail - Apparel and Shoes industry. Figs (FIGS), another stock in the same industry, closed the last trading session 1.3% lower at $6.13. FIGS has returned -11.3% in the past month.
Figs' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. Compared to the company's year-ago EPS, this represents a change of -60%. Figs currently boasts a Zacks Rank of #3 (Hold).
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
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