Buy Under Armour Shirts, Not Shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
It has been an interesting year for the stock market with the S&P 500 up 14% despite of the uncertainties from Europe, China as well as the U.S. In the tide of the bullish run, the Baltimore, Maryland based sports performance apparel maker Under Armour (UA) stands out with 37% gain so far this year, which is outperforming the almighty iPhone maker, Apple Inc. (AAPL). A natural question for investors would probably be: what drove the stock and whether it is a good investment decision to own UA shares.
In the most recent quarter, Under Armour accomplished 23.56% net revenue growth and 24.63% net income growth, which are both impressive numbers. Under Armour also achieved 10 straight quarters of above 20 percent top line growth. However, UA share price declined about 16% since the release of the quarterly results on Oct, 24th. Many investors scratch their heads while others view it as a buying opportunity. In my opinion, it is a warning sign that is largely due to the expectation to the rate of growth. READ FULL ARTICLE HERE