Under Armour (UA) All-Star Curry Shoots at Nike (NKE) - Video Blog
With the NBA All-Star Game this weekend, basketball shoe companies are all getting ready to drop their hot all-star weekend edition shoes. Well this year, we’ve got some news that Under Armour is the latest would-be challenger to Nike for basketball shoe supremacy.
Under Armour announced its signing of Steph Curry of the Golden State Warriors. The company plans to market the Curry One as a lower priced alternative to Nike’s basketball shoes. The Curry One is expected to cost $120 versus Nike’s shoes that go for $200+.
This follows a long line of competitors who tried to sign a big star to a shoe contract in the hopes of taking down Nike and their 97% market share of basketball. I can think of several off the top of my head. Fila and Grant Hill, Reebok with Shaq and later Allen Iverson, Adidas and Kobe, or D Rose. Converse with D Wade, or my personal favorite. Grandmama Larry Johnson.
The industry as a whole is currently the 114th industry out of the 265 that we measure, placing it in the Top 43% of our Zacks Industry Rank. Neither of these companies are leading the pack in that industry right now. Currently, Sketchers with its Zacks Rank #2 (Buy) rating is a company worth taking a look at in the same industry that likely will be a neutral third party while Nike and Under Armour duke it out.
Nike shares have come under pressure as of late with the stock selling off after approaching $100 in late December. Nike has failed to make a sustained move above its 20 day moving average since then and currently trades below it at $92.18.
As for Under Armour, the story is the opposite. The stock looks to be breaking out to the upside here at $74, leapfrogging its previous resistance at the $73 level. Shares are trading above the 20 day moving average which is positively sloped right now. This puts the 52-week high at $76.54 in focus.
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