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Why Urban Outfitters (URBN) Outpaced the Stock Market Today

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Urban Outfitters (URBN - Free Report) closed the most recent trading day at $36.14, moving +1.52% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.07%.

Coming into today, shares of the clothing and accessories retailer had gained 2.86% in the past month. In that same time, the Retail-Wholesale sector gained 7.39%, while the S&P 500 gained 4.02%.

The upcoming earnings release of Urban Outfitters will be of great interest to investors. The company is forecasted to report an EPS of $0.81, showcasing a 102.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.26 billion, indicating a 7.27% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $5.11 billion, indicating changes of +84.57% and +6.54%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Urban Outfitters. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.71% rise in the Zacks Consensus EPS estimate. At present, Urban Outfitters boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Urban Outfitters is currently being traded at a Forward P/E ratio of 11.02. This indicates a discount in contrast to its industry's Forward P/E of 14.14.

Investors should also note that URBN has a PEG ratio of 0.46 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.28.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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