5 Small Cap Stocks That Are Too Cheap To Ignore

4. Urban Outfitters, Inc. (NASDAQ:URBN)

Number of Hedge Fund Holders: 21

Urban Outfitters, Inc. (NASDAQ:URBN) is a consumer product wholesaler and retailer. The firm sells products such as footwear, apparel, and beauty products through its retail and wholesale stores. It is headquartered in Philadelphia, Pennsylvania.

Urban Outfitters, Inc. (NASDAQ:URBN)’s price to earnings and enterprise value to operating income operating income ratios sit at 7x each, which are lower than the sector average of 64x P/E and 14.7x EV/EBITDA ratios. This implies that there is room left for the stock to grow, as its valuation catches up with peers. JPMorgan raised the company’s share price target to $23 from $20 in September 2022, as it shared that the sector as a whole is optimistic about a recovery.

As this year’s second quarter ended, 21 out of the 895 hedge funds polled by Insider Monkey had bought a stake in Urban Outfitters, Inc. (NASDAQ:URBN).

Urban Outfitters, Inc. (NASDAQ:URBN)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 957,700 shares that are worth $17 million.