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Are Investors Undervaluing Urban Outfitters (URBN) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.05. This compares to its industry's average Forward P/E of 16.50. Over the past year, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Investors should also note that URBN holds a PEG ratio of 1.07. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. URBN's industry has an average PEG of 1.23 right now. Within the past year, URBN's PEG has been as high as 1.78 and as low as 0.80, with a median of 1.11.
Another notable valuation metric for URBN is its P/B ratio of 2.48. 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. This stock's P/B looks solid versus its industry's average P/B of 6.24. Over the past 12 months, URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14.
Finally, investors will want to recognize that URBN has a P/CF ratio of 10.93. 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. URBN's P/CF compares to its industry's average P/CF of 15.83. URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42, 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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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.05. This compares to its industry's average Forward P/E of 16.50. Over the past year, URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80.
Investors should also note that URBN holds a PEG ratio of 1.07. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. URBN's industry has an average PEG of 1.23 right now. Within the past year, URBN's PEG has been as high as 1.78 and as low as 0.80, with a median of 1.11.
Another notable valuation metric for URBN is its P/B ratio of 2.48. 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. This stock's P/B looks solid versus its industry's average P/B of 6.24. Over the past 12 months, URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14.
Finally, investors will want to recognize that URBN has a P/CF ratio of 10.93. 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. URBN's P/CF compares to its industry's average P/CF of 15.83. URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42, 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.