Urban Outfitters, Inc. (URBN) Hits Fresh High: Is There Still Room to Run?

Company Performance - Urban Outfitters (URBN) shares have increased by 9.7% over the past month, reaching a new 52-week high of $61.16 [1] - The company has gained 7.3% since the beginning of the year, outperforming the Zacks Retail-Wholesale sector's 2.4% increase and the Zacks Retail - Apparel and Shoes industry's decline of 13.7% [1] Earnings and Revenue Expectations - Urban Outfitters has consistently exceeded earnings estimates, reporting EPS of $1.04 against a consensus estimate of $0.89 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $4.51 per share on revenues of $5.88 billion, reflecting an 11.08% increase in EPS and a 5.94% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $4.91 per share on revenues of $6.18 billion, indicating year-over-year changes of 8.83% and 5.17%, respectively [3] Valuation Metrics - Urban Outfitters has a Value Score of A, along with Growth and Momentum Scores of A, resulting in a combined VGM Score of A [6] - The stock trades at 13.1X current fiscal year EPS estimates, below the peer industry average of 14.8X, and at 10.9X on a trailing cash flow basis compared to the peer group's average of 7.6X [7] - The PEG ratio stands at 1.5, which does not place the company among the top tier from a value perspective [7] Zacks Rank - Urban Outfitters holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable choice for investors [8] - The recommendation is to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Urban Outfitters meets [8] Industry Comparison - The Retail - Apparel and Shoes industry is positioned in the top 26% of all industries, indicating favorable conditions for both Urban Outfitters and its peer, Tapestry, Inc. [11] - Tapestry, Inc. has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $4.91 on revenues of $6.87 billion for the current fiscal year [10]