More Squawk from Jim Cramer: Under Armour (UA) Stock Is ‘Fine’
Updated from 10:08 AM EDT.
NEW YORK (TheStreet) -- Shares of Under Armour (UA) - Get Report are dropping 3.14% to $42.22 late Tuesday morning after the athletic apparel company reported in-line revenue, but weaker-than-expected earnings for the 2016 second quarter.
"Under Armour I thought was fine," TheStreet's Jim Cramer said of the quarter on CNBC's "Squawk on the Street" this morning.
Cramer added that the company is opening a new store, which will be located in the former iconic FAO Schwarz toy store in Midtown Manhattan.
"I don't like how much they're spending," Cramer stated, noting that the company has been hurt by Sport Authority's closure.
"The inventory is down from where it was," Cramer added in the above video.
"What they're spending to get sales is too high," Cramer said, "I think people are going to focus on that later on."
Cramer also mentioned to keep track of groups such as retail. Gap (GPS) has a turnaround happening and Nordstrom (JWN) was upgraded today at Piper Jaffray, Cramer noted.
(Under Armour is held in the Growth Seeker portfolio. See all of the holdings with afree trial)
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Under Armour stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and compelling growth in net income.
But the team also finds weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: UA