Under Armour Inc. (UA): Today's Featured Consumer Goods Laggard - TheStreet

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

.

Under Armour

(

UA

) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 1.2%. By the end of trading, Under Armour fell $1.83 (-3.2%) to $54.62 on average volume. Throughout the day, 1.8 million shares of Under Armour exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $54.49-$56.85 after having opened the day at $56.50 as compared to the previous trading day's close of $56.45. Other companies within the Consumer Goods sector that declined today were:

Swisher Hygiene

(

SWSH

), down 17.3%,

Star Scientific

(

STSI

), down 15.7%,

Enova Systems

(

ENA

), down 13%, and

China Marine Food Group

(

CMFO

), down 10%.

  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Under Armour, Inc. engages in the design, development, marketing, and distribution of apparel, footwear, and accessories for men, women, and youth worldwide. Under Armour has a market cap of $4.67 billion and is part of the

consumer non-durables

industry. The company has a P/E ratio of 60.1, above the average consumer non-durables industry P/E ratio of 59.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 57.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Under Armour a buy, one analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Under Armour as a

buy

. 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, increase in net income, good cash flow from operations 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider

iShares Dow Jones US Cons Goods

(

IYK

) while those bearish on the consumer goods sector could consider

ProShares Ultra Sht Consumer Goods

(

SZK

).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge!

Free download now

.

null