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 0.1%. By the end of trading, Under Armour fell $2 (-3.7%) to $51.83 on heavy volume. Throughout the day, four million shares of Under Armour exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $51.83-$54.10 after having opened the day at $53.70 as compared to the previous trading day's close of $53.83. Other companies within the Consumer Goods sector that declined today were: Global-Tech Advanced Innovations ( GAI), down 6.7%, Appliance Recycling Centers ( ARCI), down 6.7%, Ever-Glory International Group ( EVK), down 6.4%, and Central European Distribution ( CEDC), down 5.3%.
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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 $4.55 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 52.1, above the S&P 500 P/E ratio of 17.7. Shares are up 52.5% year to date as of the close of trading on Thursday. 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, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. 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, Accuride ( ACW), up 10.4%, Ocean Bio-Chem ( OBCI), up 10%, Mannatech ( MTEX), up 9.6%, and STR Holdings ( STRI), up 8.2%, were all gainers within the consumer goods sector with Tempur-Pedic International ( TPX) 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).

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