NEW YORK (TheStreet) -- Shares of Urban Outfitters Inc. (URBN) are higher by 10.73% to $33.23 in mid-morning trading on Thursday, as retail stocks appear to be getting a boost from an increase in retail sales for November, which has grown the most in eight months, according to MarketWatch.
U.S. retail sales increased 0.7% in November, compared to the 0.5% rise in October, and analysts' expectations of 0.4% growth.
The better than expected retail sales data saw U.S. stock futures extend their gains, MarketWatch added. Over the past 12-months retail sales have risen 5.1%.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Other retailer stocks gaining today include Nordstrom Inc. (JWN) , higher by 1.98% to $74.84, TJX Companies Inc. (TJX) , gaining by 2.47% to $65.88, and Gap Inc. (GPS) up by 2.37% to $40.15 this morning.
Additionally, Urban Outfitters stock may also be rising after the company provided positive outlook for its same-store-sales for the current quarter. The retailer said that "thus far during the fourth quarter of fiscal 2015 comparable retail segment net sales are low single digit [percentage] positive," MarketWatch said.
An analyst from Janney Capital Markets told MarketWatch that Urban Outfitters' sales are tracking at the higher end of her guidance.
For more on this subject click here.
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 multiple 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 revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 5.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
- URBAN OUTFITTERS INC's earnings per share declined by 25.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, URBAN OUTFITTERS INC increased its bottom line by earning $1.89 versus $1.61 in the prior year. For the next year, the market is expecting a contraction of 13.8% in earnings ($1.63 versus $1.89).
- You can view the full analysis from the report here: URBN Ratings Report