Under Armour Inc. (UA): Today's Featured Consumer Goods Winner

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 higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.3%. By the end of trading, Under Armour rose $2.22 (3.6%) to $64.30 on average volume. Throughout the day, 2,168,266 shares of Under Armour exchanged hands as compared to its average daily volume of 1,457,100 shares. The stock ranged in a price between $61.89-$64.47 after having opened the day at $62.00 as compared to the previous trading day's close of $62.08. Other companies within the Consumer Goods sector that increased today were: National Beverage Corporation ( FIZZ), up 9.8%, Sony Corporation ( SNE), up 9.2%, Global-Tech Advanced Innovations ( GAI), up 8.2% and Wausau Paper Corporation ( WPP), up 8.0%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Under Armour, Inc. engages in the development, marketing, and distribution of branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, the Middle East, Africa, Asia, and Latin America. Under Armour has a market cap of $5.3 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 53.9, above the S&P 500 P/E ratio of 17.7. Shares are up 27.9% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Under Armour a buy, 2 analysts rate it a sell, and 10 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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Joe's Jeans ( JOEZ), down 6.9%, China New Borun Corporation ( BORN), down 6.7%, Ever-Glory International Group ( EVK), down 5.6% and Mercer International ( MERC), down 5.1% , were all laggards within the consumer goods sector with Energizer Holdings ( ENR) being today's consumer goods sector laggard.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null