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

Have you been paying attention to shares of Urban Outfitters (URBN)? Shares have been on the move with the stock up 9.7% over the past month. The stock hit a new 52-week high of $61.16 in the previous session. Urban Outfitters has gained 7.3% since the start of the year compared to the 2.4% move for the Zacks Retail-Wholesale sector and the -13.7% return for the Zacks Retail - Apparel and Shoes industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 26, 2025, Urban Outfitters reported EPS of $1.04 versus consensus estimate of $0.89.For the current fiscal year, Urban Outfitters is expected to post earnings of $4.51 per share on $5.88 billion in revenues. This represents a 11.08% change in EPS on a 5.94% change in revenues. For the next fiscal year, the company is expected to earn $4.91 per share on $6.18 billion in revenues. This represents a year-over-year change of 8.83% and 5.17%, respectively.Valuation MetricsUrban Outfitters may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Urban Outfitters has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 13.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.8X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 1.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Urban Outfitters currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Urban Outfitters passes the test. Thus, it seems as though Urban Outfitters shares could still be poised for more gains ahead.How Does URBN Stack Up to the Competition?Shares of URBN have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Tapestry, Inc. (TPR). TPR has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Tapestry, Inc. beat our consensus estimate by 14.94%, and for the current fiscal year, TPR is expected to post earnings of $4.91 per share on revenue of $6.87 billion.Shares of Tapestry, Inc. have gained 14.4% over the past month, and currently trade at a forward P/E of 17.12X and a P/CF of 15.72X.The Retail - Apparel and Shoes industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for URBN and TPR, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks