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Urban Outfitters (URBN) Gains As Market Dips: What You Should Know

Urban Outfitters (URBN) closed the most recent trading day at $37.50, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily loss of 3.09%. Elsewhere, the Dow lost 2.41%, while the tech-heavy Nasdaq lost 4.43%.

Heading into today, shares of the clothing and accessories retailer had lost 6.46% over the past month, outpacing the Retail-Wholesale sector's loss of 9.63% and lagging the S&P 500's loss of 6.27% in that time.

Investors will be hoping for strength from URBN as it approaches its next earnings release, which is expected to be November 19, 2018. The company is expected to report EPS of $0.63, up 53.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $968.80 million, up 8.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.66 per share and revenue of $3.96 billion. These totals would mark changes of +59.28% and +9.57%, respectively, from last year.

Any recent changes to analyst estimates for URBN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. URBN is currently a Zacks Rank #3 (Hold).

Looking at its valuation, URBN is holding a Forward P/E ratio of 14.08. This valuation marks a discount compared to its industry's average Forward P/E of 15.64.

Investors should also note that URBN has a PEG ratio of 1.1 right now. 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. URBN's industry had an average PEG ratio of 1.55 as of yesterday's close.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 57, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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