Urban Outfitters stock recently traded at the highest level in six years. And on Tuesday the trendy clothing chain topped a key benchmark. One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Urban Outfitters now clears that threshold, with a jump from 78 to 83 Tuesday.
Urban Outfitters Joins 80-Plus Club
It's a notable rating jump because market research shows that stocks that go on to make the biggest gains tend to have an 80 or better RS Rating in the early stages of their moves. The upgraded 83 RS Rating shows that Urban Outfitters is in the top 17% of stocks for price performance over the past 52 weeks.
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As previously reported, Urban Outfitters' other key ratings are also top notch. Among its is a C+ Accumulation/Distribution Rating showing slightly more buying of its shares by big funds than selling. However, the number of funds holding Urban Outfitters shares has steadily risen, from 472 in June a year ago to 517 in December and 524 in March.
Urban Outfitters stock is working on a consolidation with a 47.29 entry. See if the stock can break out in heavy volume. It's a later-stage pattern, and investors should be aware that those are less likely to launch sustained new climbs.
Urban Outfitters stock edged up early Tuesday but it retreated just before the close, for a loss for the day. It rose to 48.29 on Feb. 27, its highest stock price since September 2018. It's consolidated since February.
Earnings Growth Moderated Last Quarter
While earnings growth decreased last quarter from 47% to 23%, the top line rose 8%, up from 7% in the previous report.
The company earns the No. 9 rank among its peers in the 32-stock Retail-Apparel/Shoes/Accessories industry group. Abercrombie & Fitch, Burlington Stores and Gap are among the top 5 highly rated stocks within the group. The group itself ranks in the top quartile of IBD's industry groups, No. 42 out of 197 groups.
The proprietary IBD Relative Strength Rating identifies technical performance by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
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