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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.10, which compares to its industry's average of 16.17. Over the past 52 weeks, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.09.
Investors will also notice that URBN has a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. URBN's PEG compares to its industry's average PEG of 1.36. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.68.
Another notable valuation metric for URBN is its P/B ratio of 1.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. URBN's current P/B looks attractive when compared to its industry's average P/B of 4.51. URBN's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.73, over the past year.
Finally, we should also recognize that URBN has a P/CF ratio of 8.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. URBN's P/CF compares to its industry's average P/CF of 13.07. Within the past 12 months, URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Urban Outfitters is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, URBN feels like a great value stock at the moment.
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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Urban Outfitters (URBN - Free Report) . URBN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.10, which compares to its industry's average of 16.17. Over the past 52 weeks, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.09.
Investors will also notice that URBN has a PEG ratio of 0.88. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. URBN's PEG compares to its industry's average PEG of 1.36. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.40, with a median of 0.68.
Another notable valuation metric for URBN is its P/B ratio of 1.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. URBN's current P/B looks attractive when compared to its industry's average P/B of 4.51. URBN's P/B has been as high as 2.07 and as low as 1.43, with a median of 1.73, over the past year.
Finally, we should also recognize that URBN has a P/CF ratio of 8.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. URBN's P/CF compares to its industry's average P/CF of 13.07. Within the past 12 months, URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Urban Outfitters is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, URBN feels like a great value stock at the moment.