Under Armour (UAA) Gains As Market Dips: What You Should Know
In the latest trading session, Under Armour (UAA) closed at $15.29, marking a +0.2% move from the previous day. This move outpaced the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.62%.
Prior to today's trading, shares of the sports apparel company had lost 25.01% over the past month. This has lagged the Consumer Discretionary sector's loss of 11.04% and the S&P 500's loss of 6.57% in that time.
Investors will be hoping for strength from Under Armour as it approaches its next earnings release. In that report, analysts expect Under Armour to post earnings of $0.04 per share. This would mark a year-over-year decline of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, up 5.84% from the year-ago period.
UAA's full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $5.96 billion. These results would represent year-over-year changes of -12.94% and +4.94%, respectively.
Investors might also notice recent changes to analyst estimates for Under Armour. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.68% lower. Under Armour is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Under Armour has a Forward P/E ratio of 20.76 right now. Its industry sports an average Forward P/E of 11.88, so we one might conclude that Under Armour is trading at a premium comparatively.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
