Urban Outfitters (URBN) Down In Post-Market Activity

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 or Stephanie Link.

Trade-Ideas LLC identified Urban Outfitters ( URBN) as a post-market laggard 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 $72.6 million.
  • URBN is down 3.1% today from today's close.

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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 18.7. Currently there are 16 analysts that rate Urban Outfitters a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Urban Outfitters has been 2.3 million shares per day over the past 30 days. Urban Outfitters has a market cap of $5.1 billion and is part of the services sector and retail industry. The stock has a beta of 1.34 and a short float of 5.6% with 3.10 days to cover. Shares are down 2.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Urban Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 5.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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. To add to this, URBN has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • URBAN OUTFITTERS INC has improved earnings per share by 5.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, URBAN OUTFITTERS INC increased its bottom line by earning $1.89 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($2.01 versus $1.89).
  • 40.50% is the gross profit margin for URBAN OUTFITTERS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.78% is above that of the industry average.
  • Net operating cash flow has slightly increased to $212.53 million or 3.52% when compared to the same quarter last year. In addition, URBAN OUTFITTERS INC has also modestly surpassed the industry average cash flow growth rate of -4.54%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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