Jim Cramer: Urban Outfitters Has Best Fundamentals in Industry

NEW YORK (TheStreet) -- Shares of Urban Outfitters  (URBN) - Get Report rose 1.06% to $44.81 on Wednesday to continue a generally bullish trend after the apparel retailer reported record sales and earnings that beat expectations last week.

Urban Outfitters reported $1.01 billion in fourth-quarter revenue, a 12% year-over-year increase and in line with the analysts' expectations. Net income for the quarter was $80.2 million, or 60 cents a share, up a penny a share from the same period one year earlier and 3 cents better than the consensus estimate.

Jim Cramer, Portfolio Manager of the Action Alerts PLUS charitable trust, commented on Urban Outfitters in a recent post on RealMoney.com. Here is what Cramer had to say about the stock:

We are now in leader-versus-laggard zone, and that's one of the most fraught moments in investing. In other words, after a big run in the best groups for the year, now you have to decide: when you buy something, do you buy a stock that's already soared and might be tapped out, or do you buy something that hasn't moved much at all and might be suspect or has just been left behind for no real good reason?

Let's take the most glaring cases right now: retailers and restaurants.

Urban Outfitters would be the company that now has the strongest fundamentals in the industry. It is a three-legged beast: Free People, which has always been strong, Anthropologie, with a fantastic new home furnishing look, and Urban, the namesake business which has gone from negative to positive comps helped by a really terrific new set of designs. The transformation is stupendous.

But so is the stock. It's up an astounding 26.73%, besting all retailers. You would now be coming into the retailer with the most momentum in the country by far, yet with a stock that you have to believe reflects a tremendous amount of what has transpired.

- Jim Cramer, 'Cramer: Stay With the Winning Horse' originally published 3/17/2015 on RealMoney.com.

Want more information like this from Jim Cramer BEFORE your stock moves? Learn more about RealMoney.com now.

Bob Lang, co-Portfolio Manager of Trifecta Stocks, had the following to say about Urban Outfitters' chart:

One of the best retailer charts out there, this stock has held it's gap and continues to build a nice bull flag in the mid 40's range. The MACD buy signal is still in effect and the momentum indicators show and overbought stock, but that is no reason to sell.

Separately, TheStreet Ratings team rates URBAN OUTFITTERS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate URBAN OUTFITTERS INC (URBN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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."

You can view the full analysis from the report here: URBN Ratings Report