Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Under Armour ( UA) as a new lifetime high 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 $147.5 million.
- UA has traded 39,945 shares today.
- UA is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in UA with the Ticky from Trade-Ideas. See the FREE profile for UA NOW at Trade-Ideas 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, Asia, and Latin America. UA has a PE ratio of 78.2. Currently there are 8 analysts that rate Under Armour a buy, 1 analyst rates it a sell, and 17 rate it a hold. The average volume for Under Armour has been 1.4 million shares per day over the past 30 days. Under Armour has a market cap of $10.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.87 and a short float of 11.9% with 7.24 days to cover. Shares are up 37.1% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. 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. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 35.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UA's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- UNDER ARMOUR INC has improved earnings per share by 25.5% 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 $1.50 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.50).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry average. The net income increased by 28.0% when compared to the same quarter one year prior, rising from $50.13 million to $64.17 million.
- The gross profit margin for UNDER ARMOUR INC is rather high; currently it is at 53.44%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.39% is above that of the industry average.
- You can view the full Under Armour Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.