Urban Outfitters, Inc.’s (NASDAQ:URBN) Share Price Is Matching Sentiment Around Its Earnings
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 17x, you may consider Urban Outfitters, Inc. (NASDAQ:URBN) as an attractive investment with its 11.1x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
With earnings growth that’s superior to most other companies of late, Urban Outfitters has been doing relatively well. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If not, then existing shareholders have reason to be quite…
