Under Armour Inc. (UA): Today's Featured Consumer Non-Durables Laggard

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 Non-Durables industry lower today making it today's featured Consumer Non-Durables laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Under Armour fell $1.32 (-2.3%) to $55.87 on average volume. Throughout the day, 1.8 million shares of Under Armour exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $55.80-$57.17 after having opened the day at $57.01 as compared to the previous trading day's close of $57.19. Other companies within the Consumer Non-Durables industry that declined today were: Tandy Brands Accessories ( TBAC), down 6.8%, Verso Paper ( VRS), down 6.7%, Ocean Bio-Chem ( OBCI), down 5.9%, and Zuoan Fashion ( ZA), down 2.7%.

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 $4.69 billion and is part of the consumer goods sector. The company has a P/E ratio of 60.5, above the average consumer non-durables industry P/E ratio of 59.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 58.3% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Under Armour a buy, one analyst rates it a sell, and 11 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.

On the positive front, Standard Register Company ( SR), up 9.2%, Crocs ( CROX), up 8.2%, Forward Industries ( FORD), up 7.5%, and Tufco Technologies ( TFCO), up 4.7%, were all gainers within the consumer non-durables industry with Nike ( NKE) being today's featured consumer non-durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer non-durables industry could consider Consumer Staples Select Sector SPDR ( XLP) while those bearish on the consumer non-durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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