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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 0.2%. By the end of trading, Under Armour fell $1.15 (-2.0%) to $55.26 on average volume. Throughout the day, 1,950,358 shares of Under Armour exchanged hands as compared to its average daily volume of 1,751,400 shares. The stock ranged in price between $54.70-$55.86 after having opened the day at $55.61 as compared to the previous trading day's close of $56.41. Other companies within the Consumer Goods sector that declined today were: Central European Distribution ( CEDC), down 28.5%, SGOCO Group ( SGOC), down 12.6%, Tianli Agritech ( OINK), down 12.5% and Tandy Brands Accessories ( TBAC), down 5.9%.

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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 $4.7 billion and is part of the consumer non-durables industry. The company has a P/E ratio of 46.0, above the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Friday.

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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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.

On the positive front, Chromcraft Revington ( CRC), down 25.0%, Chiquita Brands International ( CQB), down 10.9%, Lululemon Athletica ( LULU), down 8.1% and Xerium Technologies ( XRM), down 7.7% , were all gainers within the consumer goods sector with Tesla Motors ( TSLA) 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).