Under Armour (UAA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Under Armour (UAA) closed at $17.50, marking a +1.98% move from the previous day. This move outpaced the S&P 500's daily gain of 1.17%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 0.18%.
Coming into today, shares of the sports apparel company had gained 3.81% in the past month. In that same time, the Consumer Discretionary sector lost 5.02%, while the S&P 500 gained 0.88%.
Wall Street will be looking for positivity from Under Armour as it approaches its next earnings report date. The company is expected to report EPS of $0.04, down 75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 5.84% from the prior-year quarter.
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 should also note any recent changes to analyst estimates for Under Armour. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 2.91% lower. Under Armour is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Under Armour's current valuation metrics, including its Forward P/E ratio of 23.35. This represents a premium compared to its industry's average Forward P/E of 11.99.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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