Urban Outfitters, Inc. (URBN) Is Rebalancing, Another Reason For Caution

For most investors, the 2.26% change in Urban Outfitters, Inc., (URBN) could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed December 09, 2019 trading at $26.71 which saw uptrend of -19.55% since the beginning of 2019. The price of the stock has risen by 3.07% from average 12-month price target of $27.53 expected by the analysts. Most analysts believed that the stock has the potential to rise by 34.78% or more. For Urban Outfitters, Inc. to record further gain analysts believe that the company has to hit $36 price target. The high price target for URBN for next 12 months currently stands at $36. This means that the highest 12 months price target is 34.78% above its last closing price. The median price target for the stock over the next 12 months is $26, which means that it could rise by -2.66% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $23 for the stock which means it could rise by -13.89%.

A look at the URBN stock today shows that it has lost -27.89% of its value over the past one year, which has led to some investors becoming concerned about the short-term performance of Urban Outfitters, Inc. (NASDAQ:URBN). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Urban Outfitters, Inc. (URBN) is 2.5 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 6 times while it has been rated as a Hold 12 times. The 52-week high price for URBN is $38.59 which is attained on December 11 while its 52-week low currently stands at $19.63 and was reached on August 15. At the moment, the stock is trading $-0.49 below its YTD moving average set at $27.2.

Moving on, Urban Outfitters, Inc. (URBN) last released its earnings for the October 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -33% year-over-year at $0.56. The company brought a surprise of -2 as analysts were predicting $0.57 per share. The revenue generated by Urban Outfitters, Inc. in the October 2019 quarter declined by -3% to reach $962.33 million. This is low compared to the $992.45 million it recorded in the same quarter last year. To see what traders should watch in its January 2020 financial results, analysts have consensus earnings per share of $0.72 which is lower than the $0.83 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 9.41%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 4.59 % could be achieved. The company has also recorded a revenue of $3.94 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Urban Outfitters, Inc. (NASDAQ:URBN) is now trading at 11.67X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 35.77X while the industry average stands at 22.78X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Urban Outfitters, Inc. was able to achieve an EPS of $2.29 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, December 09 of 2019, the 14-day Absolute ATR (Average True Range) for URBN moved by $1.01. Over the past seven days, the stock’s average daily volatility stood at 3.15%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Urban Outfitters, Inc.’s trading volume has recently moved to 3.02 million, which is compared with the average daily volume of 2.84 million shares.

The daily chart for URBN, points out that the company has recorded 16.28% gains over the past six months. However, it is still 36.07% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 5.53% though it is -2.47% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has dropped by -4.3% while it is up 1.24% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of URBN reveals that it has lost some grounds as it ended Monday with a -12.63% fall over the past 30 days.