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Why Urban Outfitters (URBN) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Urban Outfitters (URBN)

Founded in 1970 and based in Philadelphia, Pennsylvania, Urban Outfitters Inc. (URBN) is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products. The company’s merchandises are generally sold directly to consumers through stores, catalogs, call centers and e-commerce platforms. The company has operations in the United States, Canada and Europe.

URBN sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Retail - Apparel and Shoes industry's P/E of 14.9X, shares of Urban Outfitters are trading at a forward P/E of 11.2X. URBN also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 8.9X, and a Price/Sales ratio of 0.7X.

A company's earnings performance is important for value investors as well. For fiscal 2025, one analyst revised their earnings estimate higher in the last 60 days for URBN, while the Zacks Consensus Estimate has increased $0.03 to $3.53 per share. URBN also holds an average earnings surprise of 20.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding URBN to their portfolios.

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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

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Zacks Investment Research