NEW YORK (TheStreet) -- Did you think you lost your shirt this morning?
No -- your position in Under Armour (UA) did not lose 50% overnight although in this current market environment you were not wrong to think it had! With momentum stocks falling from the sky like a financial meteor shower lately, much of the "hot money" has been exiting stocks.
Before the open Tuesday Under Armour performed its second stock split of its successful life, a two-for-one move to increase liquidity and attract more buyers. In the old days such a move would have seen the company up big today but those days are far gone.
It is a good move, though, especially given the recent weakness in the stock. Last month the company was trading at a split adjusted price of $62.40. Today, at around $51, shares are trading almost 20% below that price.
The story has not changed in the last month, just market sentiment. With a 35% quarterly growth rate and a push to expand overseas, the recent weakness, coupled with the stock split, make for an attractive add here.
Last week Under Armour was upgraded to buy from neutral by Sterne Agee ahead of its earnings report on April 24. Earnings estimates call for 9 cents a share, up 29% from last year. This expected growth comes despite terrible weather conditions during the quarter, a sign of the tremendous growth Under Armour is experiencing. The report next week will give a better insight into how well things really are at Under Armour.
At the time of publication the author had no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.