4-Star Stocks Poised to Pop: Under Armour
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, athletic-apparel maker Under Armour (NYS: UA) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Under Armour's business and see what CAPS investors are saying about the stock right now.
Under Armour facts
Headquarters (Founded) | Baltimore (1996) |
Market Cap | $3.68 billion |
Industry | Apparel, accessories, and luxury goods |
Trailing-12-Month Revenue | $1.23 billion |
Management | Founder/Chairman/CEO Kevin Plank CFO Brad Dickerson |
Return on Equity (Average, Past 3 Years) | 13.9% |
Cash/Debt | $119.7 million / $36.9 million |
Competitors | Columbia Sportswear (NAS: COLM) Nike (NYS: NKE) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 2,879 members who have rated Under Armour believe the stock will outperform the S&P 500 going forward. These bulls include KirkDCJ and SlickJefferson.
This past summer, KirkDCJ listed several of Under Armour's positives:
I love this brand ... and this company. So far, great image, solid marketing, products that don't disappoint. And still small with lots of room to grow. Sign me up.
Over the next five years, in fact, Under Armour is expected to grow its bottom line at a brisk rate of 21.5% annually. That's much faster than other active-apparel plays like Nike (11.6%), Columbia (14.3%), and VF (NYS: VFC) (13%).
CAPS member SlickJefferson elaborates on the bull case:
Under Armor is a growing company in the sports apparel segment and dominates the category of product that it invented -- moisture-wicking garments. There's plenty of room for this company to grow internationally as world soccer stars are just now starting to see the light. Look for its distinctive logo at Olympics time to see just how well the product is doing overseas. In the states, for teens and Tweens, the UA brand is on equal footing with more established players like Nike and Adidas.
What do you think about Under Armour, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackUnder Armour?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Under Armour. Motley Fool newsletter services have recommended buying shares of Under Armour and Nike, as well as creating a diagonal call position in Nike. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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