Urban Outfitters (URBN) earnings: what's the upside for the stock?

12:18 pm ET, 18 Nov 2018

Urban Outfitters, Inc. (URBN) shares are trading at $37.04, down -2.74%.   The company is announcing its quarterly earnings results on Monday after the market close.  What's driving Urban Outfitters stock price? What's URBN stock price forecast?

Urban Outfitters is a lifestyle products and services company.  Lately, the stock has performed well: it generated a return of 57% in the past year. With the economy and consumer sentiment improving, the retail sector is once again in focus.

Investors are showing interest in Urban Outfitters because of the strong revenue growth that the company has demonstrated.  On the other hand, few bearish investors are worried about insider selling. Last quarter’s revenue grew 14% to $992.45 million and earnings per share came 84 cents compared to 44 cents for the same period last year.

Equity analysts have noted that Urban Outfitters and Anthropologie store base has hit its peak in the U.S., given the decline in brick-and-mortar traffic.  The brands still have a substantial upside in international markets, however, overall growth will decline to low single digits on average over the next three years.

Third-quarter results will be released after market close on November 19, 2018.  Analysts expect the company to earn 63 cents per share on revenue of $969.05 million. The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the URBN stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Urban Outfitters, Inc. (URBN) returned +1.4%.

Urban Outfitters, Inc. (URBN) short share of float is 20.78%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Urban Outfitters, Inc. (URBN) average analyst price target ($50.63) is 25.2% above its current price ($40.44).

For the latest price and information on Urban Outfitters, Inc., please visit Finstead and search for "URBN price" or "URBN news".

Urban Outfitters, Inc. (URBN) Stock Guide

Updated at: 6:39 pm ET, 18 Sep 2020

Before we start: if you're looking for URBN stock price, you can quickly find it out by visiting Finny and typing "URBN quote". If you're looking for a quick scoop on URBN stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "URBN". You'll get all this info in one place. Or you can just type "URBN news" to get the latest stock news.

Looking to buy or sell Urban Outfitters, Inc. (URBN)? Interested in getting the full scoop on URBN, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this URBN stock guide, we'll address key questions about URBN, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are URBN earnings?
2. What is URBN stock forecast (i.e., prediction)?
3. URBN buy or sell? What is URBN Finny Score?
4. What are the reasons to buy URBN? Why should I buy URBN stock?
5. What are the reasons to sell URBN? Why should I sell URBN stock?
6. What are URBN key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are URBN earnings?

URBN trailing 12-month earnings per share (EPS) is -$0.30.

Analyst Predictions

2. What is URBN stock forecast (i.e., prediction)?

Based on URBN analyst price targets, URBN stock forecast is $24.17 (for a year from now). That means the average analyst price target for URBN stock is $24.17. The prediction is based on 24 analyst estimates.

The low price target for URBN is $14.00, while the high price target is $30.00.

URBN analyst rating is Hold.

Analysis

3. URBN buy or sell? What is URBN Finny Score?

#{finnyScore:33}Our quantitative analysis shows 2 reasons to buy and 4 reasons to sell URBN, resulting in Finny Score of 33.

4. What are the reasons to buy URBN? Why should I buy URBN stock?

Here are the reasons to buy URBN stock:

  • With over 90% of revenue in the U.S. and only about 600 stores, Urban has a wide runway for geographic expansion and existing store square footage growth to develop multipurpose retail spaces.
  • A portfolio of brands and distribution channels spanning food, wholesale, retail, and direct to consumer offer some built-in diversification.
  • Brands and product assortments are well defined and differentiated, giving the company significant pricing power over competitors.
  • URBN average analyst price target ($24.17) is above its current price ($21.90). See URBN price target chart.
  • URBN cash to debt ratio is 0.44, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See URBN cash to debt chart.

5. What are the reasons to sell URBN? Why should I sell URBN stock?

Let's look at the reasons to sell URBN stock (i.e., the bear case):

  • High-fashion products, brick and mortar exposure, and intense competition in the retail space could increase volatility in performance.
  • Intense investments in new stores, direct-to-consumer, restaurants, and assortment initiatives might limit profitability growth.
  • Because of its differentiated store experience and niche customer base, market expansion opportunities may be limited compared with some of its mainstream competitors.
  • URBN quarterly revenue growth was -16.50%, lower than the industry and sector average revenue growth (0.23% and 0.78%, respectively). See URBN revenue growth chart.
  • URBN profitability is declining. The YoY profit margin change was -3.16 percentage points. See URBN profitability chart.
  • URBN short share of float is 12.42%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See URBN short share of float chart.
  • URBN short interest (days to cover the shorts) ratio is 3.72. The stock garners more short interest than the average industry, sector or S&P 500 stock. See URBN short interest ratio chart.

Key Stats

6. What are URBN key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for URBN:

Metrics URBN
Price $20.45
Average Price Target / Upside $24.17 / 18.19%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Apparel Stores
Sector Consumer Cyclical
Number of Employees 23,000
Market Cap $2.29B
Forward P/E Ratio 13.95
Price/Book Ratio 0.65
Revenue (TTM) $3.55B
YoY Quarterly Revenue Growth -16.50%
Profit Margin -0.81%

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