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Should Value Investors Buy Urban Outfitters (URBN) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.33 right now. For comparison, its industry sports an average P/E of 16.13. URBN's Forward P/E has been as high as 13.39 and as low as 9.40, with a median of 11.26, all within the past year.
URBN is also sporting a PEG ratio of 1.08. 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 has an average PEG of 1.44 right now. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.61.
Investors should also recognize that URBN has a P/B ratio of 1.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. URBN's current P/B looks attractive when compared to its industry's average P/B of 4.63. Over the past 12 months, URBN's P/B has been as high as 2.07 and as low as 1.44, with a median of 1.73.
Finally, we should also recognize that URBN has a P/CF ratio of 10.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. URBN's current P/CF looks attractive when compared to its industry's average P/CF of 14.37. Over the past year, URBN's P/CF has been as high as 11.98 and as low as 8.09, with a median of 9.83.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.
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Should Value Investors Buy Urban Outfitters (URBN) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.33 right now. For comparison, its industry sports an average P/E of 16.13. URBN's Forward P/E has been as high as 13.39 and as low as 9.40, with a median of 11.26, all within the past year.
URBN is also sporting a PEG ratio of 1.08. 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 has an average PEG of 1.44 right now. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.61.
Investors should also recognize that URBN has a P/B ratio of 1.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. URBN's current P/B looks attractive when compared to its industry's average P/B of 4.63. Over the past 12 months, URBN's P/B has been as high as 2.07 and as low as 1.44, with a median of 1.73.
Finally, we should also recognize that URBN has a P/CF ratio of 10.89. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. URBN's current P/CF looks attractive when compared to its industry's average P/CF of 14.37. Over the past year, URBN's P/CF has been as high as 11.98 and as low as 8.09, with a median of 9.83.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.