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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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) and an A for Value. The stock has a Forward P/E ratio of 12.72. This compares to its industry's average Forward P/E of 17.32. Over the past year, URBN's Forward P/E has been as high as 12.93 and as low as 9.40, with a median of 10.87.
Investors will also notice that URBN has a PEG ratio of 0.71. 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 industry currently sports an average PEG of 1.09. URBN's PEG has been as high as 0.72 and as low as 0.40, with a median of 0.58, all within the past year.
Investors should also recognize that URBN has a P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.39. Over the past year, URBN's P/B has been as high as 2.03 and as low as 1.32, with a median of 1.59.
Finally, investors will want to recognize that URBN has a P/CF ratio of 11.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.77. URBN's P/CF has been as high as 11.98 and as low as 8.09, with a median of 9.67, all within the past year.
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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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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) and an A for Value. The stock has a Forward P/E ratio of 12.72. This compares to its industry's average Forward P/E of 17.32. Over the past year, URBN's Forward P/E has been as high as 12.93 and as low as 9.40, with a median of 10.87.
Investors will also notice that URBN has a PEG ratio of 0.71. 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 industry currently sports an average PEG of 1.09. URBN's PEG has been as high as 0.72 and as low as 0.40, with a median of 0.58, all within the past year.
Investors should also recognize that URBN has a P/B ratio of 2.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.39. Over the past year, URBN's P/B has been as high as 2.03 and as low as 1.32, with a median of 1.59.
Finally, investors will want to recognize that URBN has a P/CF ratio of 11.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.77. URBN's P/CF has been as high as 11.98 and as low as 8.09, with a median of 9.67, all within the past year.
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.