My Stock of the Day today is Urban Outfitters (URBN).

The stock gained nearly +15% after reporting earnings. There was nothing great about the report, other than a sense that the worst is now behind URBN, and growth going forward still looks good.

I have been saying that I felt the stock was washed out since early August, before the company reported Q2. The stock is up fully 50% since then. But I am not selling any.

Comp sales look to have bottomed, and actually improved each month last quarter. Profit margins also improved this quarter. Management indicated their goals to return to revenue growth of 20% or better, operating margins above 20%, and new website launches for Urban and Antrho in early 2007.

The stock is currently trading around 23x forward estimates, which is still the lowest multiple for the stock in the last few years. I plan to trade around my position, and think the stock can still be bought on pullbacks.