Washington Nationals outfielder Bryce Harper recently signed a record contract with Under Armour (UA) , which may revitalize stocks in the health and wellness sector including food companies like Hain Celestial (HAIN) and Whole Foods (WFM) .
Under Armour first signed with Harper in 2011, when he was 18 and playing in the minor leagues. On Tuesday, his agent announced a 10-year extension to that deal, which expired at the end of last season. The financial terms of the deal were not disclosed, but Harper's agent said it's the largest ever endorsement deal for a baseball player.
The signing or Harper and other celebrity athletes will continue to be a boon for Under Armour and could speak to a larger trend of people eyeing investments inthe health and wellness sector
"I want the health and wellness theme to come back," said Jim Cramer, TheStreet's found and portfolio manager of the Action Alerts Plus portfolio, pointing to several stocks in the category reporting earnings soon.
"Fitbit (FIT) reports tomorrow [May 5]," he said. "That's a hated stock. Hain just reported a very good number." Whole Foods also reports this week.
The space has seen some bad news this week, including Fairway's (FWM) bankruptcy filing and Sports Authority's continued bankruptcy odyssey. However, "overall I still think health and wellness is a good theme."
Under Armour, however, has struck gold with its celebrity athlete endorsements. Jordan Spieth signed with Under Armour when he was 19, well before he was a household name.
Another Under Armour endorser is NBA MVP Stephen Curry of the Golden State Warriors. According to the analysis of Under Armour bear Jay Sole of Morgan Stanley, Curry could add $14 billion to Under Armour's market cap.
"Its Stephen Curry signature shoe business is already bigger than those of LeBron, Kobe, and every other player except Michael Jordan," Sole wrote in a March note. "If Curry is the next Jordan, our call will likely be wrong."
"Whoever they seem to affiliate with is very strong, which is why I like [Under Armour] long term," said Cramer on the announcement of Harper's resigning. "It's a health and wellness play," having spent hundreds of millions on fitness-tracking apps.