Urban Outfitters(URBN) ZACKS·2025-02-10 18:51Core Insights - Urban Outfitters Inc. (URBN) is experiencing strong upward momentum, trading above its 50 and 200-day simple moving averages, indicating positive market sentiment and investor confidence in its financial stability and growth potential [1][2][22] Stock Performance - URBN ended the last trading session at 54.02 and 200-day SMA of 60.90, reached on January 22, 2025, with a 45.4% gain over the past three months compared to the industry’s 7% growth [3][4] Growth Drivers - Key brands such as Anthropologie and Free People are significant contributors to URBN's success, with strong sales across physical and online platforms [9][11] - Nuuly, the rental service, is on a growth trajectory with a 55% increase in net sales, supported by a 53% rise in active subscribers [10][14] - The Retail segment recorded a 10% year-over-year increase in total net sales, driven by strong digital performance [13] Financial Performance - The Wholesale segment saw net sales climb 29% year-over-year, primarily due to increased Free People wholesale sales [15] - URBN's current price-to-sales (P/S) multiple is 0.89, below the industry average of 1.78 and the sector average of 1.64, indicating potential for attractive entry points for investors [16] Earnings Estimates - Analysts have revised earnings estimates upward, with the current quarter's estimate at 0.77, reflecting year-over-year growth of 29% and 11.6%, respectively [19][20] - The Zacks Consensus Estimate for current and next quarter's sales is 1.27 billion, implying year-over-year growth of 9.4% and 5.8% [20] Investment Appeal - URBN presents a strong investment opportunity driven by robust sales growth, strategic expansion, and solid financial performance, with a Zacks Rank of 1 (Strong Buy) [22]