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Under Armour Inc. (UA): Today's Featured Consumer Goods Laggard

Tickers in this article: UA

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Under Armour ( UA) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Under Armour fell $0.90 (-1.6%) to $56.82 on heavy volume. Throughout the day, 2,182,381 shares of Under Armour exchanged hands as compared to its average daily volume of 1,433,600 shares. The stock ranged in price between $56.23-$57.80 after having opened the day at $57.77 as compared to the previous trading day's close of $57.72. Other companies within the Consumer Goods sector that declined today were: Furniture Brands International ( FBN), down 7.3%, Global-Tech Advanced Innovations ( GAI), down 6.2%, Hyster-Yale Materials Handling ( HY), down 6.1% and SGOCO Group ( SGOC), down 5.8%.

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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. Under Armour has a market cap of $5.0 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 51.4, above the S&P 500 P/E ratio of 17.7. Shares are up 18.9% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Under Armour a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet 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 and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Tufco Technologies ( TFCO), down 15.3%, Coldwater Creek ( CWTR), down 12.1%, DS Healthcare Group ( DSKX), down 11.2% and STR Holdings ( STRI), down 10.4% , were all gainers within the consumer goods sector with ConAgra Foods ( CAG) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).