Trade-Ideas LLC identified

Under Armour

(

UA

) as a pre-market laggard 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 $381.1 million.
  • UA traded 10,141 shares today in the pre-market hours as of 8:01 AM.
  • UA is down 2.4% today from yesterday's close.

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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 97. Currently there are 15 analysts that rate Under Armour a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Under Armour has been 3.2 million shares per day over the past 30 days. Under Armour has a market cap of $16.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.05 and a short float of 10.1% with 4.14 days to cover. Shares are up 35.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Under Armour as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. We feel its 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:

  • The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues rose by 28.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • UNDER ARMOUR INC has improved earnings per share by 9.8% 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 $0.95 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.95).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 12.8% when compared to the same quarter one year prior, going from $89.11 million to $100.48 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.32% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • The gross profit margin for UNDER ARMOUR INC is rather high; currently it is at 50.93%. 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 8.34% trails the industry average.

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