Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Under Armour as such a stock due to the following factors:
- UA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $120.8 million.
- UA has traded 210,386 shares today.
- UA is trading at a new lifetime high.
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More details on UA:
Under Armour, Inc. engages in the development, marketing, and distribution of branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, the Middle East, Africa, Asia, and Latin America. UA has a PE ratio of 60.1. Currently there are 8 analysts that rate Under Armour a buy, 1 analyst rates it a sell, and 18 rate it a hold.
The average volume for Under Armour has been 918,700 shares per day over the past 30 days. Under Armour has a market cap of $7.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.00 and a short float of 11.7% with 6.74 days to cover. Shares are down 1.7% year-to-date as of the close of trading on Tuesday.
rates Under Armour as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- UA's revenue growth has slightly outpaced the industry average of 17.6%. Since the same quarter one year prior, revenues rose by 25.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UA's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, UA has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
- UNDER ARMOUR INC has improved earnings per share by 25.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNDER ARMOUR INC increased its bottom line by earning $1.21 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.21).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry average. The net income increased by 27.0% when compared to the same quarter one year prior, rising from $57.32 million to $72.78 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market on the basis of return on equity, UNDER ARMOUR INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Under Armour Ratings Report.