Urban Outfitters (URBN) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Urban Outfitters (URBN) ending at $34.21, denoting a -1.18% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.64%.
Heading into today, shares of the clothing and accessories retailer had gained 7.68% over the past month, outpacing the Retail-Wholesale sector's loss of 0.34% and the S&P 500's loss of 2.21% in that time.
The investment community will be paying close attention to the earnings performance of Urban Outfitters in its upcoming release. In that report, analysts expect Urban Outfitters to post earnings of $0.89 per share. This would mark year-over-year growth of 122.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.26 billion, indicating a 7.13% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.21 per share and a revenue of $5.11 billion, indicating changes of +83.43% and +6.51%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Urban Outfitters currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Urban Outfitters has a Forward P/E ratio of 10.79 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.37.
We can additionally observe that URBN currently boasts a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Retail - Apparel and Shoes industry stood at 1.09 at the close of the market yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
