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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on 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 has a Forward P/E ratio of 12.88. This compares to its industry's average Forward P/E of 19.46. Over the last 12 months, URBN's Forward P/E has been as high as 14.69 and as low as 9.02, with a median of 11.45.
Another notable valuation metric for URBN is its P/B ratio of 2.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.15. Within the past 52 weeks, URBN's P/B has been as high as 2.37 and as low as 1.40, with a median of 1.81.
Finally, our model also underscores that URBN has a P/CF ratio of 11.87. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. URBN's P/CF compares to its industry's average P/CF of 16.11. Over the past year, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 9.90.
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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Are Investors Undervaluing Urban Outfitters (URBN) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on 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 has a Forward P/E ratio of 12.88. This compares to its industry's average Forward P/E of 19.46. Over the last 12 months, URBN's Forward P/E has been as high as 14.69 and as low as 9.02, with a median of 11.45.
Another notable valuation metric for URBN is its P/B ratio of 2.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.15. Within the past 52 weeks, URBN's P/B has been as high as 2.37 and as low as 1.40, with a median of 1.81.
Finally, our model also underscores that URBN has a P/CF ratio of 11.87. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. URBN's P/CF compares to its industry's average P/CF of 16.11. Over the past year, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 9.90.
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.