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.
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 $360.4 million.
- UA has traded 1.1 million shares today.
- UA is trading at a new lifetime high.
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More details on UA:
Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. UA has a PE ratio of 99. Currently there are 15 analysts that rate Under Armour a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Under Armour has been 2.1 million shares per day over the past 30 days. Under Armour has a market cap of $17.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.02 and a short float of 8.3% with 4.03 days to cover. Shares are up 42% year-to-date as of the close of trading on Monday.
rates Under Armour as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 28.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, UA's share price has jumped by 58.22%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- UNDER ARMOUR INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNDER ARMOUR INC increased its bottom line by earning $0.95 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.95).
- The gross profit margin for UNDER ARMOUR INC is rather high; currently it is at 51.53%. Regardless of UA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.88% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.51, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.89 is weak.
- You can view the full Under Armour Ratings Report.