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Is Urban Outfitters (URBN) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Urban Outfitters (URBN - Free Report) is a stock many investors are watching right now. URBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that URBN holds a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. URBN's PEG compares to its industry's average PEG of 0.82. Within the past year, URBN's PEG has been as high as 0.78 and as low as 0.33, with a median of 0.51.

Another notable valuation metric for URBN is its P/B ratio of 1.49. 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 2.98. URBN's P/B has been as high as 2.10 and as low as 1.01, with a median of 1.33, over the past year.

Investors could also keep in mind Zumiez (ZUMZ - Free Report) , an Retail - Apparel and Shoes stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Zumiez sports a P/B ratio of 1.26 as well; this compares to its industry's price-to-book ratio of 2.98. In the past 52 weeks, ZUMZ's P/B has been as high as 2.36, as low as 1.05, with a median of 1.69.

These are just a handful of the figures considered in Urban Outfitters and Zumiez'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 and ZUMZ is an impressive value stock right now.


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