At the beginning of the year I highlighted shares of Urban Outfitters (URBN) as an attractive growth play for investors. Followers of that advice saw the stock rise from the low 20’s to the low 30’s over the course of 2005. However, recent weakness in retail stocks has caused a pullback in URBN and for those who have yet to take a position in the company, there is an opportunity here, I believe.
Not only are the fundamentals strong, but the technicals look good as well. Readers of this blog know I don’t use charts to pick stocks, but when a company I like fundamentally also has a good chart pattern, it’s usually a good entry point.
Here’s a second version of the chart, in response to the reader’s comment: