5 Rocket Stocks to Buy After the Storm

Under Armour

Under Armour (UA), on the other hand, isn't undervalued - not even close. The $5.5 billion firm currently trades for a P/E of nearly 50, more than double the earnings premium you'd see at rival Nike (NKE). But Under Armour's growth trajectory makes up for the premium pricing in shares, and so does one of the most attractive brand names in the sports apparel business.

UA's selling point is its technology: its signature moisture-wicking performance fabric happens to be one of the most imitated offerings among its peers. As the firm adds new products to its portfolio (its foray into footwear was a big move it made a few years ago), it should be able to expand its top line in existing markets, while at the same time pushing to altogether new markets. Despite the fact that the sports apparel market is pretty saturated here at home, UA has been able to grow by grabbing share from other firms, an impressive feat.

International sales have a lot of room to get bigger on Under Armour's income statement. Only around 10% of sales come from abroad, whereas more than two-thirds of Nike's sales come from overseas. That gives UA a big, less saturated market to tackle in the future. A balance sheet with a deep net cash position should help it get there with minimal hiccups.

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