Urban Outfitters Inc. (URBN): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Urban Outfitters ( URBN) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Urban Outfitters fell $1.22 (-2.7%) to $43.27 on heavy volume. Throughout the day, 5,824,853 shares of Urban Outfitters exchanged hands as compared to its average daily volume of 1,916,800 shares. The stock ranged in price between $43.10-$44.35 after having opened the day at $43.65 as compared to the previous trading day's close of $44.49. Other companies within the Services sector that declined today were: Promotora de Informaciones SA/FI ( PRIS), down 17.8%, HHGregg Incorporated ( HGG), down 11.9%, Fortune Industries ( FFI), down 10.9% and ChinaNet Online Holdings ( CNET), down 8.7%.
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Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products in the United States. It operates in two segments, Retail and Wholesale. The company operates retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brands. Urban Outfitters has a market cap of $6.5 billion and is part of the retail industry. The company has a P/E ratio of 27.5, above the S&P 500 P/E ratio of 17.7. Shares are up 13.2% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Urban Outfitters a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Urban Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, SoundBite Communications ( SDBT), down 65.9%, Sport Chalet ( SPCHB), down 33.3%, Sport Chalet ( SPCHA), down 18.3% and YY ( YY), down 17.2% , were all gainers within the services sector with Whole Foods Market ( WFM) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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