NEW YORK (TheStreet) -- Under Armour (UA) stock is jumping 18.45% to $81.23 in late morning trading on Thursday after the company reported better than expected financial results for the 2015 fourth quarter.
"Connective Fitness is the play for Under Armour," TheStreet's Jim Cramer said on CNBC's Squawk on the Street, referring to the company's health and fitness network that tracks and analyses physical activity.
The network had almost 160 million registered users by the end of 2015 and could be key to expanding Under Armour's businesses.
Nike (NKE) has a similar fitness tracking system, but Cramer believes that both companies can succeed in the technology field.
"This was an ill-advised downgrade," he observed.
Separately, Under Armour has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's revenue, net income and earnings per share growth, premium valuation, weak operating cash flow and disappointing return on equity.
You can view the full analysis from the report here: UA
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.