Urban Outfitters (URBN) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Urban Outfitters (URBN) reached $35.90, with a +0.62% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.9%.
The clothing and accessories retailer's stock has climbed by 13.2% in the past month, exceeding the Retail-Wholesale sector's gain of 4.99% and the S&P 500's gain of 1.45%.
The investment community will be paying close attention to the earnings performance of Urban Outfitters in its upcoming release. On that day, Urban Outfitters is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 100%. In the meantime, our current consensus estimate forecasts the revenue to be $1.26 billion, indicating a 7.13% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.21 per share and revenue of $5.11 billion. These totals would mark changes of +83.43% and +6.51%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Urban Outfitters. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. At present, Urban Outfitters boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Urban Outfitters is at present trading with a Forward P/E ratio of 11.12. Its industry sports an average Forward P/E of 14.07, so one might conclude that Urban Outfitters is trading at a discount comparatively.
It is also worth noting that URBN currently has a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.21 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 142, positioning it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow URBN in the coming trading sessions, be sure to utilize Zacks.com.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
