Urban Outfitters broke out of a cup-with-handle base, which has a buy point of 74.45, on July 21. Shares of the retail stock are in a buy zone that goes up to 78.17. The company will announce its second-quarter results on Wednesday after the market closes.
This is an early-stage base that can net higher gains. The stock has been trading tightly in the 5% buy zone and offers an alternate entry at 80.71, according to IBD MarketSurge pattern recognition tools. The entry coincides with the stock's all-time high.
The apparel and accessories company has been delivering steady earnings and sales growth over the past eight quarters. Earnings growth ranged between 13% and 120% over those quarters, and sales growth ranged between 6% and 11% during the same period.
For the second quarter, analysts estimate earnings of $1.48 per share, a 19% increase from the same quarter a year ago. Sales are expected to rise 9% to $1.48 billion. For the full year, analysts have tweaked their estimates lower and now see earnings rising 22% to $4.98 per share in 2026 and by 10% to $5.49 per share in 2027.
Retail Stock Rises On Results
Shares rocketed 23% on May 22 after first-quarter results. Earnings growth accelerated for the third straight quarter while sales growth also picked up pace. Earnings of $1.16 per share increased 68% while sales of $1.3 billion grew 11% from the prior year.
Urban Outfitters operates several consumer brands such as Anthropologie, Free People, and Urban Outfitters in the U.S., Canada and Europe. During the first quarter, the company opened 13 new locations. The company also sells its merchandise through department and specialty stores, as well as on its website.
Urban Outfitters ranks first in the retail-apparel and accessories group, according to IBD Stock Checkup. The retail stock has a Composite Rating of 95 while its EPS Rating of 98 is nearly ideal. Its Relative Strength Rating sits at 93.
Mutual funds own 64% of outstanding shares. More funds have been net buyers of the stock over the past three quarters. Its Accumulation/Distribution Rating of C shows neutral action from fund managers over the past 13 weeks. However, demand for the stock is running high, going by its Up/Down Volume Ratio of 1.1. In the Investor's Business Daily mutual fund index, the Fidelity Contrafund (FCNTX) holds shares of Urban Outfitters stock.
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