For Immediate Release
Chicago, IL – July 15, 2026 – Zacks Equity Research shares Urban Outfitters URBN as the Bull of the Day and Shake Shack SHAK as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Halliburton HAL and mid-cap Patterson-UTI PTEN.
Here is a synopsis of all five stocks:
Bull of the Day:
Urban Outfitters is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands.
The stock sports a Zacks Rank #1 (Strong Buy) thanks to favorable EPS revisions, with the positivity shown below.
The stock is also a part of the Zacks Retail – Apparel and Shoes industry, which is currently ranked in the top 31% (76 out of 247) of all Zacks industries.
Urban Outfitters
Urban Outfitters has continued to be a stellar earnings performer over the past year or so, exceeding the Zacks Consensus EPS estimate by an average of 12% across its last four releases. URBN beat the estimate by 16% in its latest print, with sales also coming in nearly 2% ahead of the Zacks Consensus Sales estimate.
Sales grew by 11% YoY in the above-mentioned period, with adjusted EPS seeing a similarly strong 12% climb from the year-ago period. Top line growth has remained on a steady, somewhat predictable uptrend over the past three years, with the recent 11% YoY growth rate reflecting an acceleration relative to the past.
The $1.5 billion in sales marked a Q1 record for Urban Outfitters, with earnings of $1.30 also a record for the period. Driving the positivity was strong, comparable retail sales growth of 5.6% YoY.
The growth outlook for its current and next fiscal year remains highly positive given its retail-focused nature, with sales forecasted to climb 9% in its current FY27 and 7% in FY28. Earnings growth is also rock-solid, with EPS estimates suggesting 13% growth in FY27 and 10% in FY28.
The valuation picture also remains more than fair, with the current 10.9X forward 12-month earnings multiple comparing favorably to an 11.3X five-year median and 16.6X five-year highs. The stock sports a Style Score of ‘B’ for Value.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Urban Outfitters would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Shake Shack is a modern-day “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, and wine.
The stock has fallen into a Zacks Rank #5 (Strong Sell), reflective of bearish EPS revisions.
The stock also resides in the Zacks Retail – Restaurants industry, which is currently ranked in the bottom 23% of all Zacks industries.
Shake Shack
Shake Shack shares have had a rather tough 2026 so far, down more than 25% and facing significant pressure after its latest earnings results. The company posted a huge 100% miss relative to our consensus EPS estimate, with sales also falling short of our expectations.
While the post-earnings drop was rough, further downside came roughly a month later, following a mid-quarter guidance update in which the company slashed expectations across many key metrics. FY26 adjusted EBITDA, restaurant-level profit margin, and net income guidance were all lowered, with the company referencing current macroeconomic uncertainty.
The timing of the guidance cut certainly caught shareholders off guard given that it had just reaffirmed its guidance the month prior, though the company does remain confident, with CEO Rob Lynch stating –
‘Our updated guidance reflects the current macroeconomic uncertainty, competitive landscape, and related impacts now that we are more than two-thirds through the quarter, but it’s important to emphasize that our fundamental business drivers remain strong. We remain confident in our ability to execute our strategic priorities and deliver long-term shareholder value.’
Shares have recovered some gains over the recent month, but the reality remains that the company’s profitability picture remains highly challenged. Beef prices also remain elevated, another negative force impacting the company in a big way.
Bottom Line
Negative earnings estimate revisions stemming from a guidance cut paint a challenging picture for the company’s shares in the near term.
Shake Shack is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Fresh U.S.-Iran Conflicts Could Extend Energy Rally: 2 Bargains Remain
Another escalation in U.S.-Iran conflicts has pushed oil prices higher once again. This environment could help sustain the oil-energy sector’s upward momentum, making bargain opportunities increasingly difficult to find. However, our proprietary stock screener has identified two attractively valued names: large-cap Halliburton and mid-cap Patterson-UTI.
Oil Sector’s Rally to Continue?
The oil-energy space has seen a strong rally of 20.7% year to date, outperforming the Zacks S&P 500 composite’s increase of 10.7%. Geopolitical conflicts in the Middle East have remained an important driver of oil prices, providing continued support to energy stocks.
With the conflicts between the United States and Iran escalating further, West Texas Intermediate (“WTI”) oil is once again hovering around the $80-per-barrel mark, according to data from Oilprice.com. The U.S. Energy Information Administration (“EIA”) estimates the WTI spot price to average $76.26 per barrel this year, a level that should remain supportive of upstream operations, as many producers have considerably lower breakeven costs.
Amid these constructive backdrops, the rally in the oil-energy sector is likely to continue.
2 Undervalued Energy Stocks to Bet on: HAL, PTEN
Halliburton is a leading oilfield service player providing technologies, products and services to the exploration and production companies across the entire well life cycle. The current oil prices, which are much higher than the shut-in and break-even prices, are likely to aid upstream activities, which are expected to have a positive impact on demand for Halliburton’s services encompassing Completion and Production & Drilling and Evaluation. The large-cap oilfield service company, currently carrying a Zacks Rank #2 (Buy), is thus well-positioned to sustain its upward momentum after skyrocketing 64.6% over the past year.
Even after the rally, HAL is undervalued, with a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.40x, which is below the broader industry average of 8.85x.
Patterson-UTI is also expected to continue gaining on the prevailing crude-price scenario. This is because demand for the company’s drilling and completion services will likely remain robust, as the supportive commodity-price backdrop is expected to continue bolstering exploration and production operations. In other words, with increased exploration and production activities, upstream players will hire more drilling and completion services that will, in turn, boost the bottom line of PTEN. Thus, the stock is likely to have more room to run, even after surging 53.6% over the past year.
Despite the momentum-driven run-up, the #2 Ranked mid-cap stock remains undervalued, with a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) of 5.08x, below the broader industry average of 11.80x. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Halliburton Company (HAL): Free Stock Analysis Report
Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Shake Shack, Inc. (SHAK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).