URBAN OUTFITTERS INC (NASDAQ:URBN) – A High Growth Momentum Stock with Strong Technicals

URBAN OUTFITTERS INC (NASDAQ:URBN) stands out as a high-growth momentum candidate with a solid technical setup. The company has demonstrated strong earnings growth, improving profitability, and positive analyst revisions, while its stock exhibits a robust uptrend with clear support levels.

Growth Momentum Highlights

• Earnings Growth: URBN posted a 68.1% year-over-year EPS growth in the most recent quarter, with accelerating trends over the past three quarters (12.7% → 23.6% → 50.7%).
• Profit Margins Expanding: Quarterly profit margins improved from 7.35% to 8.15% over the last two quarters, reflecting better cost management and pricing power.
• Free Cash Flow Surge: FCF per share grew 190% year-over-year, indicating strong cash generation.
• Analyst Optimism: EPS estimates for next year have been revised upward by 7.2% over the past three months.
• Consistent Earnings Surprises: The company beat EPS estimates in all of the last four quarters, averaging a 22.3% surprise.

Technical Strength

URBN holds a perfect 10 out of 10 in ChartMill’s Technical Rating, reflecting:

• A strong uptrend in both short and long-term timeframes.
• Outperformance against 94% of stocks over the past year.
• Trading near 52-week highs, signaling bullish momentum.
• Support levels at $69.84-$70.30 and $66.89-$67.95 provide downside protection.

Setup Quality

With a Setup Rating of 7, URBN shows consolidation potential, though recent volatility suggests waiting for a tighter range before entry. A breakout above $74.46 could signal the next leg higher, with support near $65.25 acting as a logical stop level.

For a deeper technical breakdown, review the full technical report for URBN.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar growth and technical strength, updated daily.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.