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Is Urban Outfitters (URBN) Stock Undervalued 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.

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 an A grade for Value. The stock holds a P/E ratio of 13.05, while its industry has an average P/E of 15.08. URBN's Forward P/E has been as high as 15.49 and as low as 9.10, with a median of 12.80, all within the past year.

Investors should also recognize that URBN has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.22. URBN's P/B has been as high as 2.97 and as low as 1.40, with a median of 2.14, over the past year.

Finally, investors should note 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 current P/CF looks attractive when compared to its industry's average P/CF of 15. Within the past 12 months, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 10.42.

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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