Bet on Under Armour as it Hits New High - Analyst Blog


Shares of Under Armour, Inc. ( UA ) surged to attain a new 52-week high of $74.45 on Aug 12, 2013, before closing at $73.93, gaining momentum from the phenomenal second-quarter 2013 results. Year-to-date, this Zacks Rank #3 (Hold) stock has generated a return of roughly 53%.

Based on the current price, this apparel, footwear, and accessories retailer is 10% above the Zacks Consensus average analyst price target of $67.16. The company currently trades at a forward P/E of 51.07x, a substantial premium to the peer group average of 20.67x. Additionally, the company's long-term estimated EPS growth rate is 20.9%.

Barring few hiccups, the stock has been on the rise, since Under Armour reported its results on Jul 25, 2013. The company posted quarterly earnings of 16 cents a share that surged 166.7% from the year-ago quarter, and surpassed the Zacks Consensus Estimate of 14 cents, thereby marking the 18 th consecutive positive earnings surprise. The average beat for the last 18 quarters stands at 50.5%.

The company's largest product category, Apparel, once again witnessed strong sales. In fact this is the 15th straight quarter in which the segment registered at least 20% growth. Apparel sales jumped 22.7%, and facilitated Under Armour to register 23% growth in its top line to $454.5 million.

Consequently, Under Armour raised its guidance for 2013. The company now expects net revenue in the range of $2.23 billion - $2.25 billion, up 22% - 23% year over year. Earlier, it forecasted 2013 revenue in the range of $2.21 billion - $2.23 billion, representing growth of 21% - 22%.

Apart from Time Warner, other stocks such as Archer Daniels Midland Company ( ADM ), Skechers USA Inc. ( SKX ) and Michael Kors Holdings Limited ( KORS ) achieved new 52-week highs of $38.59, $29.05 and $72.54, respectively, on Aug 12, 2013.

ARCHER DANIELS (ADM): Free Stock Analysis Report

MICHAEL KORS (KORS): Free Stock Analysis Report

SKECHERS USA-A (SKX): Free Stock Analysis Report

UNDER ARMOUR-A (UA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ADM , KORS , SKX , UA

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