Do You Think Urban Outfitters (URBN)’s Valuation is Compelling?

·2 min read

ClearBridge Investments, an investment management company, published its “ClearBridge Small Cap Value Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2000 Value Index. On an absolute basis, the strategy gained in nine out of eleven sectors it was invested in during the quarter. Industrials, financials, and consumer discretionary sectors were the leading contributors while the healthcare sector was the primary detractor. Overall, stock selection and sector allocation contributed to the relative performance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Small Cap Value Strategy highlighted stocks like Urban Outfitters, Inc. (NASDAQ:URBN) in the fourth quarter 2022 investor letter. Headquartered in Philadelphia, Pennsylvania, Urban Outfitters, Inc. (NASDAQ:URBN) engages in the retail and wholesale of general consumer products. On March 8, 2023, Urban Outfitters, Inc. (NASDAQ:URBN) stock closed at $27.10 per share. One-month return of Urban Outfitters, Inc. (NASDAQ:URBN) was 0.86%, and its shares gained 4.35% of their value over the last 52 weeks. Urban Outfitters, Inc. (NASDAQ:URBN) has a market capitalization of $2.498 billion.

ClearBridge Small Cap Value Strategy made the following comment about Urban Outfitters, Inc. (NASDAQ:URBN) in its Q4 2022 investor letter:

"We exited our position in Urban Outfitters, Inc. (NASDAQ:URBN), in the consumer discretionary sector, which engages in the retail and wholesale of consumer products through its brands Urban Outfitters, Anthropologie, Bhldn and Free People. While the company continues to possess several positive attributes, we felt that its relative valuation and long-term value creation opportunities were not as compelling as other new opportunities that we found within the market. Ultimately, we used this as an opportunity to consolidate our overall consumer discretionary exposure."

Urban Outfitters, Inc. (NASDAQ:URBN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Urban Outfitters, Inc. (NASDAQ:URBN) at the end of the fourth quarter which was 21 in the previous quarter.

We discussed Urban Outfitters, Inc. (NASDAQ:URBN) in another article and shared the list of best clothing stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.