Bull of the Day: Urban Outfitters (URBN)
Urban Outfitters URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands.
The stock sports a Zacks Rank #1 (Strong Buy) thanks to favorable EPS revisions, with the positivity shown below.
Image Source: Zacks Investment Research
The stock is also a part of the Zacks Retail – Apparel and Shoes industry, which is currently ranked in the top 31% (76 out of 247) of all Zacks industries.
Urban Outfitters
Urban Outfitters has continued to be a stellar earnings performer over the past year or so, exceeding the Zacks Consensus EPS estimate by an average of 12% across its last four releases. URBN beat the estimate by 16% in its latest print, with sales also coming in nearly 2% ahead of the Zacks Consensus Sales estimate.
Sales grew by 11% YoY in the above-mentioned period, with adjusted EPS seeing a similarly strong 12% climb from the year-ago period. Top line growth has remained on a steady, somewhat predictable uptrend over the past three years, with the recent 11% YoY growth rate reflecting an acceleration relative to the past.
Image Source: Zacks Investment Research
The $1.5 billion in sales marked a Q1 record for Urban Outfitters, with earnings of $1.30 also a record for the period. Driving the positivity was strong, comparable retail sales growth of 5.6% YoY.
The growth outlook for its current and next fiscal year remains highly positive given its retail-focused nature, with sales forecasted to climb 9% in its current FY27 and 7% in FY28. Earnings growth is also rock-solid, with EPS estimates suggesting 13% growth in FY27 and 10% in FY28.
Image Source: Zacks Investment Research
The valuation picture also remains more than fair, with the current 10.9X forward 12-month earnings multiple comparing favorably to an 11.3X five-year median and 16.6X five-year highs. The stock sports a Style Score of ‘B’ for Value.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Urban Outfitters URBN would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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