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Should Value Investors Buy Urban Outfitters (URBN) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Urban Outfitters (URBN - Free Report) is a stock many investors are watching right now. URBN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.14 right now. For comparison, its industry sports an average P/E of 21.03. Over the past year, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.12.
Investors will also notice that URBN has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. URBN's industry currently sports an average PEG of 1.75. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.41, with a median of 0.80.
We should also highlight that URBN has a P/B ratio of 1.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.45. 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, investors will want to recognize that URBN has a P/CF ratio of 10.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. URBN's current P/CF looks attractive when compared to its industry's average P/CF of 15.78. Over the past year, URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.56.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.
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Should Value Investors Buy Urban Outfitters (URBN) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Urban Outfitters (URBN - Free Report) is a stock many investors are watching right now. URBN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.14 right now. For comparison, its industry sports an average P/E of 21.03. Over the past year, URBN's Forward P/E has been as high as 13.39 and as low as 9.02, with a median of 11.12.
Investors will also notice that URBN has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. URBN's industry currently sports an average PEG of 1.75. Within the past year, URBN's PEG has been as high as 1.13 and as low as 0.41, with a median of 0.80.
We should also highlight that URBN has a P/B ratio of 1.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.45. 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, investors will want to recognize that URBN has a P/CF ratio of 10.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. URBN's current P/CF looks attractive when compared to its industry's average P/CF of 15.78. Over the past year, URBN's P/CF has been as high as 11.46 and as low as 7.71, with a median of 9.56.
These are just a handful of the figures considered in Urban Outfitters's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that URBN is an impressive value stock right now.