Trade-Ideas: Under Armour (UA) Is Today's New Lifetime High Stock
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 $66.7 million.
- UA has traded 1.1 million shares today.
- UA is trading at a new lifetime high.
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More details on UA:
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. Currently there are 10 analysts that rate Under Armour a buy, 2 analysts rate it a sell, and 14 rate it a hold.
The average volume for Under Armour has been 1.2 million shares per day over the past 30 days. Under Armour has a market cap of $6.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.17 and a short float of 12.6% with 10.15 days to cover.
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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. 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 5.0%. Since the same quarter one year prior, revenues rose by 23.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- UA's debt-to-equity ratio is very low at 0.06 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 1.44, which illustrates the ability to avoid short-term cash problems.
- UNDER ARMOUR INC reported significant earnings per share improvement 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 $1.21 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.21).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 163.4% when compared to the same quarter one year prior, rising from $6.67 million to $17.57 million.
- The gross profit margin for UNDER ARMOUR INC is rather high; currently it is at 50.91%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.86% trails the industry average.
- You can view the full Under Armour Ratings Report .