Urban Outfitters (URBN) Is Strong On High Volume Today
Trade-Ideas LLC identified
(
) as a strong on high relative volume 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 $123.4 million.
- URBN has traded 595,479 shares today.
- URBN is trading at 3.52 times the normal volume for the stock at this time of day.
- URBN is trading at a new high 3.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on URBN:
Urban Outfitters, Inc., a lifestyle specialty retail company, engages in the retail and wholesale of general consumer products. The company operates in two segments, Retail and Wholesale. URBN has a PE ratio of 13. Currently there are 11 analysts that rate Urban Outfitters a buy, no analysts rate it a sell, and 14 rate it a hold.
The average volume for Urban Outfitters has been 2.1 million shares per day over the past 30 days. Urban Outfitters has a market cap of $2.8 billion and is part of the services sector and retail industry. The stock has a beta of 0.39 and a short float of 10.5% with 1.85 days to cover. Shares are down 37.9% 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 revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- URBN's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income has decreased by 1.0% when compared to the same quarter one year ago, dropping from $67.51 million to $66.84 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
- You can view the full Urban Outfitters Ratings Report.
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