The Closing Print live trading and financial blog during market hours.

Urban Outfitters URBN – Added to the Watchlist

Urban Outfitters (URBN) is higher on volume, as the stock moves off the rising 50d. Supporting this conclusion, we see institutions picking up shares of many of the retailers over the past week. In addition, the cycle began turning higher this week as we move into summer vacation.

 

XRT URBN Urban Outfitters

 

More than likely, this cycle in retail will continue until extremes are reached. Watch other retailers like GOOS, WMT, WSM, ROST, and FIVE among others.

Urban Outfitters URBN has value at these levels, which compounds our interest.

 

Urban Outfitters URBN intrinsic-value

 

Urban Outfitters URBN Daily Chart

Relative Strength line is climbing at 97, showing tremendous power about to be unleashed, just as price action lifts off the 50d. Noteworthy is the number of funds owning shares (right panel) is climbing for four quarters in a row, ending in June. These analysts have ratcheted earnings estimates higher (left panel) by 54% for 2019. EPS is scheduled for mid-August.

 

Urban Outfitters URBN Chart

 

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Competitors in the group are also rising. We own shares in Canada Goose GOOS.

Other names in the group worth considering include specialty retailers like Williams Sonoma. WSM value versus future earnings value is shown below.

 

WSM-intrinsic-value

 

Williams Sonoma WSM has some work to do. That said, the stock is showing signs of buying. We might add this to the watchlist later in the week.

RS line is climbing, so we’ve set alerts for a break above current levels. Stay alert.

 

WSM

 

The bottom line? Retailers are hot!

Watch and listen LIVE at 9:20 AM. Cheers!

Happy Trading,

Vinny



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