Under Armour Inc. (UA): Today's Featured Consumer Goods 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 Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Under Armour fell $3.69 (-6.5%) to $52.93 on heavy volume. Throughout the day, 6.9 million shares of Under Armour exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $52.01-$55.50 after having opened the day at $54.15 as compared to the previous trading day's close of $56.62. Other companies within the Consumer Goods sector that declined today were: ATC Venture Group ( ATC), down 22.6%, Crocs ( CROX), down 21.2%, Tandy Brands Accessories ( TBAC), down 10.9%, and Cereplast ( CERP), 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 $4.75 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 61.1, above the average consumer non-durables industry P/E ratio of 60.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 60% year to date as of the close of trading on Wednesday. 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.

On the positive front, Titan International ( TWI), up 15.2%, Tenneco ( TEN), up 14.5%, Libbey ( LBY), up 13.4%, and Brunswick Corporation ( BC), up 11.3%, were all gainers within the consumer goods sector with Constellation Brands ( STZ) being today's featured consumer goods sector leader.

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

If you liked this article you might like

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

Haters Have an Incredible New Chance to Send the Bull Market in Stocks Crashing

Haters Have an Incredible New Chance to Send the Bull Market in Stocks Crashing

The Long-Awaited Stock Market Correction Is Lurking

The Long-Awaited Stock Market Correction Is Lurking

Cramer: The Stock Market Had Three Sessions

Cramer: The Stock Market Had Three Sessions

Amazon Won't Be Only Retailer Alive in 5 Years

Amazon Won't Be Only Retailer Alive in 5 Years