Under Armour ($UA) Is Gaining Traction In The Sneaker Market

Under Armour [stckqut]UA[/stckqut] has performed exceptionally well in the last five years. Its revenue growth trend has been remarkable with last twenty quarters posting growth of at least 20%. Lately, the company has also shown good performance in international markets with revenue crossing $100 million for the first time in the recently concluded quarter. And more importantly, for a fast-growing company, its debt is at reasonable levels.

Nonetheless, shares have been under some pressure following the fiscal first-quarter results. UA parred some earlier gains following the quarterly results as it EPS declined 16.7%, year-over-year, mainly due to unfavorable foreign exchange environment and costs related to recent fitness based app acquisitions.

The stock now trades $7 below its 52-week high. But in my opinion the stock has potential to scale higher. I see further 10% to 15% upside in the mid-term.

Source: Under Armour Is Gaining Traction In The Sneaker Market

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