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Should Value Investors Buy Urban Outfitters (URBN) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.73, while its industry has an average P/E of 16.71. Over the last 12 months, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.09.
Investors will also notice that URBN has a PEG ratio of 0.85. 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 1.46. Over the past 52 weeks, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.66.
Another notable valuation metric for URBN is its P/B ratio of 1.56. Investors use the P/B ratio to look at a stock's market value versus 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 4.62. Over the past year, URBN's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.73.
Finally, investors will want to recognize that URBN has a P/CF ratio of 8.39. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.38. URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.67, all within the past year.
These are only a few of the key metrics included in Urban Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, URBN looks like an impressive value stock at the moment.
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Should Value Investors Buy Urban Outfitters (URBN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.73, while its industry has an average P/E of 16.71. Over the last 12 months, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.09.
Investors will also notice that URBN has a PEG ratio of 0.85. 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 1.46. Over the past 52 weeks, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.66.
Another notable valuation metric for URBN is its P/B ratio of 1.56. Investors use the P/B ratio to look at a stock's market value versus 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 4.62. Over the past year, URBN's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.73.
Finally, investors will want to recognize that URBN has a P/CF ratio of 8.39. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.38. URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.67, all within the past year.
These are only a few of the key metrics included in Urban Outfitters's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, URBN looks like an impressive value stock at the moment.