NEW YORK (TheStreet) -- Shares of Under Armour Inc. (UA) are surging this afternoon, up 4.08% to $71.15 on heavy trading volume, after the athletic apparel company that got its start catering to football players, hired supermodel Gisele Bundchen to promote its products as ti looks to appeal more to women, according to Bloomberg.
Bundchen was signed to a multiyear deal as the latest addition to its list of female endorsers, the company said.
Under Armour, founded by Chief Executive Officer Kevin Plank to sell clothes that go under football jerseys, has expanded into shoes, yoga wear and bags, Bloomberg said.
TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNDER ARMOUR INC (UA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, good cash flow from operations, expanding profit margins and increase 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."