Jim Cramer Says Urban Outfitters (URBN) was "Recognized as Fabulous"

We recently published a list of Jim Cramer Talked About These 13 Stocks. In this article, we are going to take a look at where Urban Outfitters, Inc. (NASDAQ:URBN) stands against other stocks that Jim Cramer discusses.

Urban Outfitters, Inc. (NASDAQ:URBN) was among the retailers that reported solid quarterly earnings and was highlighted by Cramer as he said:

“I want to highlight to you three retailers that reported excellent quarters in just the last couple of days, and only one was recognized as fabulous, that’s Urban Outfitters. One’s holding on with its fingertips, that’s RL, Ralph Lauren. And then a third, TJX, that’s getting sold off, yet presents, I think, now the best buying opportunity… They each have their own value proposition. Urban Outfitters is made up of its eponymous flagship store along with Anthropologie and Free People. They’re all doing incredibly well.

But when I listened to the call, I am struck by one particular division Nuuly…. This is Urban’s apparel rental business for women, and it’s growing at a stunning 60%… Now, every single one of the divisions have positive same-store sales, but up 60% even on a small base, that is stunning. For 98 bucks a month, Nuuly lets you rent six items a month, and you can buy them at discounted prices if you like them after you wear them…. At a time when clothes can eat up a huge chunk of your disposable income, I think this is the answer, that’s value…

Look, there are a ton of terrific retailers, but these three really put up amazing numbers, and only one is being recognized. I see that as an opportunity because it’s just a matter of time before Wall Street realizes that the kings of retail came out, showed you their best stuff this quarter, and you want to get into all of them before everybody else figures out what I just told you.”

Urban Outfitters (NASDAQ:URBN) offers a range of lifestyle products and services through multiple retail brands, selling fashion, accessories, home goods, beauty items, and wellness products targeted at various age groups. The company also operates a clothing rental service, restaurants, event spaces, and markets its own apparel lines.

Overall, URBN ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of URBN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than URBN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.