Latest news with #UrbanOutfittersInc
Yahoo
30-05-2025
- Business
- Yahoo
Top 4 Value Stocks With Impressive PEG Ratios to Buy Now
At a time when volatility is striking every second day, investors can rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price. Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks - Urban Outfitters Inc. URBN, Dentsply Sirona XRAY, LATAM Airlines Group LTM and Exelixis EXEL. However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to 'value traps.' In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent. There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount. However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio. The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate A low PEG ratio is always better for value investors. While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock. There are some drawbacks to using the PEG ratio. It doesn't consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term. Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration. Here are some of the screening criteria for a winning strategy: PEG Ratio less than X Industry Median P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes) Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.) Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.) Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.) Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.) Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential. Here are four out of the 13 stocks that qualified the screening: Urban Outfitters: Based in Philadelphia, PA, Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. The company's merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. Urban Outfitters has operations in the United States, Canada and Europe. URBN currently has a Zacks Rank #1 and a Value Score of B. Urban Outfitters also has an impressive five-year historical growth rate of 20%. Dentsply Sirona: Headquartered in York, PA, Dentsply Sirona is a global leader in the design, development, manufacture and marketing of dental consumables, dental laboratory products, dental specialty products and consumable medical device products. After the DENTSPLY-SIRONA merger, the business has been organized into two reporting segments, Dental & Healthcare Consumables and Technologies. Apart from a discounted PEG and P/E, Dentsply Sirona currently has a Zacks Rank #2 and a Value Score of A. XRAY has a long-term expected growth rate of 7.4%. LATAM Airlines: The company and its subsidiaries offer passenger and cargo air transportation across the Americas, the Caribbean, Europe and Oceania. As of Dec. 31, 2024, LATAM Airlines served 151 destinations in 27 countries with a fleet of 347 aircraft. LTM has a Zacks Rank #1 and a Value Score of A. LATAM Airlines also has an impressive five-year expected growth rate of 14.8%. Exelixis: Based in Alameda, CA, Exelixis is a biotechnology company focused on developing and commercializing therapies for hard-to-treat cancers. It leverages its expertise and partnerships to advance a pipeline of small molecules, Antibody-Drug Conjugates, and other biotherapeutics across multiple tumor types. EXEL has an impressive long-term expected earnings growth rate of 21%. Exelixis currently has a Value Score of B and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Exelixis, Inc. (EXEL) : Free Stock Analysis Report LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business of Fashion
22-05-2025
- Business
- Business of Fashion
Urban Outfitters Beats Analyst Expectations Off Strong Sales Growth
Urban Outfitters Inc. beat first-quarter sales and profit expectations in its second consecutive quarter of steady revenue gains. The Philadelphia-based company's sales rose 10.7 percent to $1.33 billion, while earnings per share jumped 78.5 percent to $1.16, beating expectations by 39.56 percent. Net same-store sales rose 4.8 percent, led by a 6.9 percent increase at Anthropologie, followed by 3.1 percent growth at Free People and 2.1 percent growth at Urban Outfitters. Nuuly subscription segment net sales rose 59.5 percent, driven by a 52.9 percent year-on-year increase in average active subscribers in the first quarter. Stock jumped 14.48 percent in extended trading. Learn more: Urban Outfitters' Clothing Rental Platform Turns Its First Annual Profit Rental platform Nuuly reported an operating income of $13.3 million last year, a major benchmark for a concept that's long been associated with rapid growth and steep losses.
Yahoo
18-05-2025
- Business
- Yahoo
Do Urban Outfitters' (NASDAQ:URBN) Earnings Warrant Your Attention?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Urban Outfitters (NASDAQ:URBN). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Urban Outfitters. Read for free now. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years Urban Outfitters grew its EPS by 11% per year. That's a good rate of growth, if it can be sustained. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Urban Outfitters maintained stable EBIT margins over the last year, all while growing revenue 7.7% to US$5.6b. That's encouraging news for the company! You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Urban Outfitters The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Urban Outfitters' future EPS 100% free. Since Urban Outfitters has a market capitalisation of US$5.8b, we wouldn't expect insiders to hold a large percentage of shares. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Notably, they have an enviable stake in the company, worth US$1.7b. That equates to 28% of the company, making insiders powerful and aligned with other shareholders. Looking very optimistic for investors. It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between US$4.0b and US$12b, like Urban Outfitters, the median CEO pay is around US$8.5m. The CEO of Urban Outfitters only received US$1.0m in total compensation for the year ending January 2025. That's clearly well below average, so at a glance that arrangement seems generous to shareholders and points to a modest remuneration culture. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, Urban Outfitters is a growing business, which is encouraging. The growth of EPS may be the eye-catching headline for Urban Outfitters, but there's more to bring joy for shareholders. Boasting both modest CEO pay and considerable insider ownership, you'd argue this one is worthy of the watchlist, at least. However, before you get too excited we've discovered 1 warning sign for Urban Outfitters that you should be aware of. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Do Urban Outfitters' (NASDAQ:URBN) Earnings Warrant Your Attention?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Urban Outfitters (NASDAQ:URBN). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Urban Outfitters. Read for free now. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. We can see that in the last three years Urban Outfitters grew its EPS by 11% per year. That's a good rate of growth, if it can be sustained. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Urban Outfitters maintained stable EBIT margins over the last year, all while growing revenue 7.7% to US$5.6b. That's encouraging news for the company! You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Urban Outfitters The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Urban Outfitters' future EPS 100% free. Since Urban Outfitters has a market capitalisation of US$5.8b, we wouldn't expect insiders to hold a large percentage of shares. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Notably, they have an enviable stake in the company, worth US$1.7b. That equates to 28% of the company, making insiders powerful and aligned with other shareholders. Looking very optimistic for investors. It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between US$4.0b and US$12b, like Urban Outfitters, the median CEO pay is around US$8.5m. The CEO of Urban Outfitters only received US$1.0m in total compensation for the year ending January 2025. That's clearly well below average, so at a glance that arrangement seems generous to shareholders and points to a modest remuneration culture. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense. As previously touched on, Urban Outfitters is a growing business, which is encouraging. The growth of EPS may be the eye-catching headline for Urban Outfitters, but there's more to bring joy for shareholders. Boasting both modest CEO pay and considerable insider ownership, you'd argue this one is worthy of the watchlist, at least. However, before you get too excited we've discovered 1 warning sign for Urban Outfitters that you should be aware of. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
13-05-2025
- Business
- Yahoo
Here's Why URBN Can be a Value Play Stock: Key Insight for Investors
Urban Outfitters Inc. URBN stands out as a compelling value play within the Retail-Apparel and Shoes industry, trading at a forward 12-month price-to-earnings ratio of 10.99, below the industry average of 15.74 and the Retail-Wholesale sector average of 23.01. This undervaluation highlights its potential for investors seeking attractive entry points in the retail space. URBN's Value Score of A emphasizes its investment appeal. URBN Looks Attractive From Valuation Perspective Image Source: Zacks Investment Research Shares of the company are currently trading 15.3% below its 52-week high of $61.16 reached on March 3, 2025, making investors contemplate their next move. In the past six months, the URBN stock has gained 32%, significantly outperforming the industry's 10.2% fall. The company's strategic initiative and operational efficiencies have helped it outpace the broader sector and the S&P 500 index's respective declines of 1.7% and 5.7% in the same period. URBN Stock Past Six-Month Performance Image Source: Zacks Investment Research This leading lifestyle specialty retailer closed Friday's trading session at $51.82. The stock is trading above its 50 and 200-day SMAs (simple moving averages) of $51.33 and $46.53, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, indicates positive market sentiment and investors' confidence in URBN's financial health and growth prospects. URBN Trades Above 50 & 200-Day Moving Averages Image Source: Zacks Investment Research Urban Outfitters delivered strong performance in its Retail segment in the fourth quarter of fiscal 2025, achieving solid sales growth. Comparable sales rose across all its brands, with Anthropologie leading and recording 8.3% year-over-year growth. This increase was largely driven by a significant boost in digital sales, alongside a moderate rise in in-store sales. The Home category also recorded its first positive comparable sales growth of the fiscal Free People Group continued to perform well, showing notable gains both online and in-store. The FP Movement sub-brand experienced particularly rapid growth, fueled by increased brand visibility and the expansion of its store Wholesale segment also delivered exceptional results, supported by strong demand from specialty and department stores. Free People Wholesale played a key role in this performance by emphasizing full-price selling over markdowns. FP Movement Wholesale saw impressive growth as well, with sales surging more than 90% year over year. This focus on maintaining full-price sales significantly contributed to higher Outfitters' rental subscription platform, Nuuly, remained a major driver of growth. In the fiscal fourth quarter, the segment's net sales rose 78.4% from the previous year, with subscription revenues climbing 55.6%. This growth was primarily attributed to a 53.5% increase in active subscribers to 300, also reached a milestone by achieving its first full year of profitability, generating $13 million in operating profit with a mid-single-digit margin. The platform added more than 20,000 new subscribers in the fiscal fourth quarter, reflecting strong continued momentum. Management is targeting $500 million in revenues for Nuuly by fiscal 2026. Our model estimates that net sales of the Nuuly segment will increase 10.4% year over year in fiscal 2026. URBN remains focused on growing its physical retail presence through a strategic and ambitious store-opening plan. In the fiscal fourth quarter, the company opened seven Free People stores and 25 FP Movement locations, while Anthropologie added new stores to its portfolio. Simultaneously, Urban Outfitters continued optimizing its retail footprint by closing underperforming locations and concentrating on smaller, more efficient, high-performing fiscal 2026, the company intends to open 58 stores, including 20 FP Movement locations, 16 Free People stores and 15 Anthropologie sites. Over the longer term, URBN plans to scale FP Movement to 300 stores across North America, strengthening its presence in the activewear category. Backed by strong brand momentum, sound financial results and a clear strategic vision, the company is well-positioned for sustained growth. Urban Outfitters' core brand continues to struggle, with a 3.5% year over year decline in retail segment comps for the fiscal fourth quarter. This underperformance is particularly concerning compared with Anthropologie and Free People. In North America, sales trends remained weak, showing high-single-digit negative comps. Despite efforts to improve the merchandise mix and reduce markdowns, these strategies have yet to boost sales. The brand faces tough competition from fast-fashion players like Zara and H&M, and its future growth remains uncertain. We expect sales of the Urban Outfitters brand to decline 2.7% year over year, with comparable sales edging down 1% in the first quarter of fiscal SG&A expenses are other challenges, increasing 8.6% year over year to $402.4 million. The rise is mainly due to higher marketing costs aimed at driving sales and customer traffic. Payroll costs also grew as a result of store sales growth and store openings. As a result, SG&A expenses as a percentage of net sales rose by 33 basis points to 24.6%. For fiscal 2026, the company expects SG&A expenses to grow 7.1% to $1.56 billion, driven by continued marketing investments, higher store labor costs from openings, and technology improvements. URBN has the potential as an investment due to its attractive valuation and growth in brands like Free People and Nuuly, which are performing well. The company's expansion in digital sales and physical stores, along with its strategic initiatives, suggests a positive outlook for the long the company continues to face challenges with its core Urban Outfitters brand, which has struggled to maintain growth, and rising operational costs that may impact margins. Given these factors, while there are growth opportunities, investors should proceed cautiously as the challenges could hinder more substantial short-term gains. The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks are Nordstrom Inc. JWN, Stitch Fix SFIX and Canada Goose is a leading fashion specialty retailer. It has a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks Zacks Consensus Estimate for Nordstrom's fiscal 2025 earnings and revenues indicates growth of 1.8% and 2.2%, respectively, from the fiscal 2024 reported levels. JWN delivered a negative trailing four-quarter average earnings surprise of 26.1%.Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of Zacks Consensus Estimate for SFIX's fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 at Zacks Consensus Estimate for Canada Goose's current fiscal year's earnings and revenues implies declines of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordstrom, Inc. (JWN) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
