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Urban Outfitters URBN shares ended the last trading session 16.7% higher at $50.45. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.3% loss over the past four weeks.
U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Urban Outfitters presents a compelling case for investors due to a strong brand portfolio, solid performance across retail and wholesale channels, and impressive momentum in its Nuuly subscription business.
This clothing and accessories retailer is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +17.4%. Revenues are expected to be $1.28 billion, up 6.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Urban Outfitters, the consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on URBN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Urban Outfitters is a member of the Zacks Retail - Apparel and Shoes industry. One other stock in the same industry, Figs (FIGS), finished the last trading session 11.6% higher at $4.04. FIGS has returned -23% over the past month.
Figs' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of -200%. Figs currently boasts a Zacks Rank of #3 (Hold).
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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
FIGS, Inc. (FIGS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).