Urban Outfitters (URBN) Hits New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Urban Outfitters as such a stock due to the following factors:
- URBN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $141.1 million.
- URBN has traded 24,654 shares today.
- URBN is trading at a new lifetime high.
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More details on URBN:
Urban Outfitters, Inc., a lifestyle specialty retail company, is engaged in the retail and wholesale of general consumer products. The company operates in two segments, Retail and Wholesale. URBN has a PE ratio of 26.5. Currently there are 14 analysts that rate Urban Outfitters a buy, no analysts rate it a sell, and 16 rate it a hold.
The average volume for Urban Outfitters has been 1.8 million shares per day over the past 30 days. Urban Outfitters has a market cap of $5.9 billion and is part of the services sector and retail industry. Shares are up 26.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Urban Outfitters as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.3%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.15% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, URBN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- URBN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, URBAN OUTFITTERS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- URBAN OUTFITTERS INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, URBAN OUTFITTERS INC reported lower earnings of $1.70 versus $1.89 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.70).
- You can view the full Urban Outfitters Ratings Report.
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