Why Urban Outfitters (URBN) Stock is Up Today

NEW YORK (TheStreet) -- Urban Outfitters (URBN) was gaining 2.3% to $38.15 Wednesday following comments at its annual investor day.

During a presentation, the company said it plans to double its total sales by 2020.

Urban Outfitters management said that the home category currently accounts for 17% of sales, and it hopes to increase that percentage to 22% by 2020. To reach that goal, the company will refocus its Anthropologie on home furnishings, cutting the brand's apparel to 50% from 70% of its offerings, according to Barron's.

Read more: Urban Outfitters' Analyst Day: What Wall Street's Saying

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

"The plan for the home category is to make it a destination to outfit entire rooms (versus the prior focus on accent pieces and gifting), and the new registry service (soft-launched last week with a strong response from customers) aligns nicely with both the broadened home assortment and the BHLDN bridal sub-brand," according to Sterne Agee analyst Ike Boruchow.

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

"We rate URBAN OUTFITTERS INC (URBN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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