|Bid||149.84 x 800|
|Ask||149.85 x 900|
|Day's Range||147.75 - 151.43|
|52 Week Range||74.90 - 164.79|
|Beta (3Y Monthly)||0.64|
|PE Ratio (TTM)||52.52|
|Earnings Date||Dec 4, 2018 - Dec 10, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||161.48|
Back in late 2018, the long-time bearish analyst team at Wells Fargo upgraded Under Armour (NYSE:UAA, NYSE:UA) stock to "Market Perform", citing declining clearance sales, strengthening marketplace inventory, restructuring earnings-per-share benefits in 2019 and relatively low Street expectations as reasons why the worst was over for UAA stock. I immediately responded with an article saying that they were wrong, and that worst was not over for UAA stock just yet. At the time, Under Armour was a $24 stock. By Christmas Eve, UAA stock had plunged 30% to below $17. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In retrospect, Wells Fargo was clearly premature in its upgrade back in early December. Now, in late January, I think we have another premature bullish upgrade from Wall Street. This time around, Goldman Sachs is upgrading UAA stock to a Buy rating, citing significant margin improvement as being the fuel for a rally toward $28. This upgrade seems like a classic case of shooting behind the duck. The reality is that the time to buy UAA stock was back in December, when the stock was hovering around the $17 range. Since then, the stock has rallied more than 20% to back above $20. Now, it's time to take profits, not buy more. Why? Because while UAA stock may see $28, it likely won't see that price tag until four or five years down the road. * The 10 Best Index Funds to Buy and Hold Today, $20 is fair value on UAA stock, meaning that the late December and early January rally is more an opportunity to take profits than anything else. ### Don't Shoot Behind the Duck One of the worst things you can do in the stock market is shoot behind the duck. That means buying a stock that has already had its day in the sun, or selling a stock whose worst is already in the rear-view mirror. Not shooting behind the duck is much easier said than done. It's tough to distinguish between buying into a stock on an uptrend that will continue on an uptrend, and buying into a stock on an uptrend that is about to reverse course. In order to distinguish the two, you have to look at the fundamentals. When you do that with UAA stock, it becomes clear that buying here is shooting behind the duck. The Under Armour brand seems to have already had its day in the sun. A few years ago, the brand was flying high on optimism regarding an operational breakout in the basketball market through the parabolic rise of NBA superstar and Under Armour athlete Stephen Curry. But, Curry has since lost popularity. So have Under Armour's other athletes like Jordan Spieth. Consequently, the whole brand rapidly lost relevance, and revenue growth and margins went in reverse. Meanwhile, competition from Adidas (OTCMKTS:ADDYY), Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU) has picked up. Those brands have successfully grown mind and market share through turning into iconic lifestyle brands. Under Armour hasn't made that pivot, and as such, it is losing its mind and market share. Brand value has also been diluted by management selling more aggressively through low-price channels like Kohl's (NYSE:KSS). Overall, Under Armour's growth narrative is largely broken. To be sure, the international business has runway, North America growth is stable and margins have room to meaningfully improve over the next several years. But, that's already priced in. UAA stock trades at more than 60X forward earnings, which is about double Nike's valuation, and Nike is growing revenues at a faster rate. Thus, buying into UAA stock after a 20%-plus rally seems more like shooting behind the duck than buying into a long-term winner. ### $20 Is Fair Value for Now My five-year outlook for Under Armour stock is fairly straight forward. During that stretch, the North America business will stabilize thanks to the company's focus on the performance category and wider reach through lower price channel distribution. Meanwhile, the international business will continue to slow as other brands like Lululemon steal international share. Margins will improve from today's depressed base. But, they won't get back to peak levels because of diluted brand value, relevance and popularity. Overall, this is a stable growth company with mid-single-digit annualized revenue growth potential and healthy margin drivers over the next five years. That combination should drive EPS to $1.15 by fiscal 2023. Using a historically normal Nike-forward multiple of 25, that implies a fiscal 2022 price target of just under $29. * 7 Stupidly Cheap Stocks to Buy Now Discounted back by 10% per year, that equates to a fiscal 2018 price target of ~$20. We still aren't at the end of fiscal 2018 for Under Armour (fourth-quarter earnings are due in February). Thus, $20 feels like fair value for now. ### Bottom Line on UAA Stock Given slow growth, a big valuation and operational headwinds, this isn't the sort of stock you buy and hold forever. Instead, UAA stock should be bought on big dips and sold on big rallies. Right now, UAA stock is on the heels of a big rally. As such, this is the time to take profits. As of this writing, Luke Lango was long NKE and LULU. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality Compare Brokers The post It's Time to Take Profits on Under Armour Stock appeared first on InvestorPlace.
The release of innovative products could catalyze the financial prospects of Lululemon Athletica (LULU). It is also set to expand its outerwear collection. An improved customer experience that includes greater omnichannel capabilities could boost the company's competitive advantage.
The stock market stumbled in morning trade Tuesday with the Dow Jones industrials falling about 150 points. Nike stock was upgraded to buy.
Under Armour's (UAA) sustained focus on brand development, expansion of the DTC business, product innovation and foray into the technology-based fitness businesses bode well.
The Zacks Textile - Apparel industry is poised for a robust Q4 earnings show driven by brand enhancement initiatives of players, alongside focus on digital and international growth.
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains breaks down Nike's new Bluetooth connected, self-lacing Adapt BB shoes before he dives into how they tie into the sportswear giant's overall digital growth plans.
Zacks.com featured expert Kevin Matras highlights: Lululemon Athletica, Est??e Lauder, Ollie's Bargain Outlet and Darden Restaurants
Analysts See More Upside in LULU after Its Strong Holiday Run(Continued from Prior Part)Change since fourth-quarter guidance upgrade Lululemon’s (LULU) 12-month forward PE ratio has risen ~9.0% since the company raised its outlook for the fourth
Analysts See More Upside in LULU after Its Strong Holiday Run(Continued from Prior Part)Recent performanceLululemon (LULU) exceeded analysts’ earnings expectations in each of the first three quarters of fiscal 2018. The company’s gross and
Analysts See More Upside in LULU after Its Strong Holiday Run(Continued from Prior Part)Upbeat guidance In December, Lululemon (LULU) reported better-than-expected revenue growth of 20.8% in the third quarter of fiscal 2018. However, investors were
V.F. Corp (VFC) posts robust third-quarter fiscal 2019 results. Additionally, management raises its earnings and sales outlook for the fiscal year.
Among top growth stocks, Lululemon is mounting a quick comeback after a big fall during the recent bear market.
In this daily bar chart of LULU, below, we can see that prices traded below the rising 200-day moving average line for much of December but are now back above this long-term indicator. The daily On-Balance-Volume (OBV) line has been strong the past three weeks and is close to making a new high. If the OBV line makes a new high soon it will lead the price series - this is not unusual for this indicator.
Are you looking for apparel and retail stocks to buy for the long haul? If so, you might want to spend less time checking out the Victoria's Secret's of the world and focus on companies winning with menswear. Why? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Menswear is hot. So hot, experts expect women's clothing to take a backseat over the next few years with men taking center stage for the first time in a long while. Gartner L2, a company that specializes in business intelligence, suggests that within two years, men's clothing will be growing at a faster pace than women's clothing. Another business intelligence firm, Euromonitor International, expects men's clothing to outpace women's clothing for the next years, perhaps longer. "Fashion has always been about women but men are finally having their time," Lizzy Bowring, catwalk director at trend-forecasting agency WSGN, told Business Insider. "It's the younger men that are driving the push for menswear. These men are more savvy and aware, and there is a lot of competition to look the part." Just because younger men want to look better, it doesn't mean they always want to walk around in a suit. This means investors can't make assumptions about which companies will win the battle for the male shopper. * 7 Stocks to Buy as the Dollar Weakens With that in mind, here are seven stocks to buy that cover the entire spectrum of menswear. ### Retail Stocks to Buy: LVMH (LVMUY) If you only can buy one stock that should benefit in the trend toward menswear, I believe LVMH (OTCMKTS:LVMUY) is an excellent choice because of its diversification. While LVMH -- the owner of Louis Vuitton -- does a lot of business with women, it also has an interesting array of brands that are focused on the male consumer. Whether it be shirtmaker Pink, watchmaker Tag Heuer, yachtmaker Royal Van Lent, or whiskey maker Glenmorangie, there's something for every taste and price point. Furthermore, if there's one thing I know about CEO Bernard Arnault, one of the five richest people on the planet, it's that he can spot a trend a mile away and then capitalize on it. I know it is over-the-counter, which makes it tough to purchase, but owning this stock will make you a lot of money over the long haul, even if its various fashion houses don't move further into menswear. ### Retail Stocks to Buy: VF (VFC) Source: Andy Via Flickr Although the apparel conglomerate is in the process of spinning off its Lee and Wrangler jeans business -- which generated $2.5 billion in revenue in its most recent annual report and tends to focus on a male customer -- VF (NYSE:VFC) has plenty of other businesses catering to men. While all three of VFC's major brands: Vans, The North Face and Timberland, appeal to both men and women, the fact that research shows menswear is expected to lead the way over the next few years can make sure each of those businesses will bring plenty to market for its male customers in that time. That's especially true for Vans, the company's hot footwear brand, that grew sales by 26% in the second quarter. Once dying on the vine, it's a brand in revival mode. "For the first time in years, we've seen Nike share moderate as a preferred brand," senior research analyst Erin Murphy said in a statement last May. "Offsetting this weakness, we've seen an unexpected rise in trends like streetwear with Vans and Supreme gaining momentum." * 10 Growth Stocks With the Future Written All Over Them As VF continues to tweak its apparel portfolio, I'd be surprised if it didn't make a reasonably sizable acquisition in the next 12 months -- one that caters to a male audience. ### Retail Stocks to Buy: Lululemon (LULU) Source: Shutterstock When Lululemon (NASDAQ:LULU) came out with its ambitious plan for growth in early 2016, investors were skeptical it could achieve them. One of the goals set by then CEO Laurent Potdevin was to reach $1 billion in sales for its men's line by 2020. That went along with plans to reach $4 billion in global sales and $1 billion in e-commerce revenue. When the company first started out on its five-year plan, men's clothing was just beginning to gain traction. Now, it represents approximately 22% of the company's overall revenue, and its quarterly growth continues to accelerate with the company admitting in its most recent conference call that the line would hit $1 billion in revenue before the end of 2020. As I stated in my most recent article about Lululemon, the only thing that stands in the way of LULU reaching all of its goals for 2020 is a recession in 2019. Since that's unlikely -- despite the president's best efforts -- it remains one of my favorite stocks to buy for this year and beyond. ### Retail Stocks to Buy: Oxford Industries (OXM) Source: Shutterstock Unless you follow the apparel industry closely, you likely haven't heard of this Atlanta-based company, but you likely have heard of one or more of its three main brands: Tommy Bahama, Lilly Pulitzer, and Southern Tide. I came to follow Oxford Industries (NYSE:OXM) when it acquired Southern Tide in 2016 for $85 million. I had stumbled onto the men's sportswear brand a couple of years before the acquisition. I liked the look of its clothing; not to mention its Skipjack logo was different from all the other animals and mammals that are stuck on golf shirts to make them look preppy. Anyway, the company's latest quarterly report might not have gotten investors all revved up -- its Q3 2018 earnings announced in December were $0.14 a share, three cents shy of the consensus estimate and three cents lower than a year earlier with revenues that also missed analyst expectations -- but with menswear ready to take a front seat in the apparel business in 2019 and beyond, Southern Tide and Tommy Bahama make a pretty good one, two punch. * 7 Oversold Small-Cap Stocks With Massive Profit Growth When you consider that it's got a PEG ratio of 9.1, 100 basis points less than Lululemon, anywhere below $75 is growth at a reasonable price. ### Retail Stocks to Buy: Columbia Sportswear (COLM) Source: McArthurGlen Designer Outlets via Flickr (modified) Like a lot of the businesses I've recommended as stocks to buy to take advantage of the menswear boom, Columbia Sportswear (NASDAQ:COLM) sells a lot of apparel and footwear to both sexes. A majority of the company's sales are generated by its legacy Columbia brand with smaller contributions from prAna, Sorel, and Mountain Headwear. The three other brands were all acquisitions: Mountain Headwear was acquired in 2003 for $36 million including debt; Sorel was bought out of bankruptcy in 2012 for $8 million, and prAna was acquired in 2014 for $190 million. In the company's most recent third-quarter report, the three smaller brands generated $155 million with Columbia delivering $641 million in sales. While there's no question that Columbia drives its business -- Q3 2018 revenues grew by 8% on a constant currency basis -- the Sorel business got the company into footwear at a very reasonable price; in fiscal 2017, Sorel's revenues grew 6% year over year to $229 million. In the latest quarter, Sorel's sales grew 13% on a constant currency basis. Although COLM is down 1.6% year to date through January 16, it's got a streak going of seven consecutive years of calendar-year gains; providing investors with very consistent returns over to ### Retail Stocks to Buy: Zumiez (ZUMZ) Source: Shutterstock Although the action-sports apparel retailer sells both men's and women's clothing, Zumiez (NASDAQ:ZUMZ) generates a large chunk of its revenue from one specific category. 41% of revenue came from men's clothing in 2017 -- with accessories (18%), footwear (16%), women's apparel (14%) and hardgoods (11%) accounting for the rest. One of the few companies left to report monthly same-store sales, Zumiez grew December comps by 4.9%; that's on top of 7.9% same-store sales growth a year earlier for a two-year average of 6.4%. As a result of its strong December sales, Zumiez upped its Q4 2018 guidance on January 9, and now expects 3% same-store sales growth in Q4, up from its previous estimate of 0%-2%. In addition, it raised the bottom-end of its EPS guidance by six cents and its top-end projection by two cents to $1.10 a share. At the top end of earnings, Zumiez will have grown Q4 2018 earnings per share by 38% compared to a year earlier. * Top 10 Global Stock Ideas for 2019 From RBC Capital With all the success of action sports brands like Vans, investors can expect more good news from Zumiez in fiscal 2019. ### Retail Stocks to Buy: Foot Locker (FL) Source: Shutterstock 2018 was an interesting year for Foot Locker (NYSE:FL) stock. It recovered from a precipitous drop in 2017 that saw the company's value cut by 61% between May and November and delivered a total return of 16% this past year. Up 6% year-to-date through January 16, it looks as though Foot Locker stock has some momentum heading into the remainder of 2019. What's changed? Foot Locker's close association with Nike (NYSE:NKE) -- 66% of sales -- is starting to pay dividends given the strong demand at the moment for Swoosh-related products. "We feel really great about the growth in digital as we've stressed continuously in our prepared remarks, but we also mentioned the increase on the wholesale side beyond expectations there," Nike CEO Mark Parker stated in December discussing the company's Q2 2019 results. "And I think that's driven by the elevation of the experience . . . particularly with Foot Locker and [Dick's Sporting Goods] for example." It's always good when your biggest supplier calls you out for the work you're doing to sell its products. No wonder Foot Locker CEO Richard Johnson is enthusiastic about its holiday selling season and fourth quarter overall. Foot Locker reports Q4 2018 earnings in late February. Expect them to be very healthy with positive guidance for fiscal 2019 also likely in the cards As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 7 Retail Stocks to Buy for the Rise of Menswear appeared first on InvestorPlace.
The past month's rousing market rally has been a rising tide lifting all boats. Every sector has participated in the broad-based boom, and some industries have even reclaimed all that was lost during December's disaster. The action in retail stocks has been particularly strong with many attractive stocks to buy. To assess the action, we'll use the SPDR Retail ETF (NYSE:XRT), which counts all of the sector's biggest companies among its holdings. Since bottoming at $38.10, XRT has climbed 15% to test the descending 50-day moving average. Two bullish developments from the past week suggest further upside could be in the offing. First, the down-gap caused by lousy earnings news from Macy's (NYSE:M) on Jan. 10 was rapidly reversed showing dip buyers remain aggressive. Second, XRT's ability to hold firm in the face of overhead resistance suggests sellers are thus far powerless to turn the fund lower. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Top 10 Global Stock Ideas for 2019 From RBC Capital With that said, here are three retail stocks to buy that stand out among the rest in the space. ### Bed Bath and Beyond (BBBY) Bed Bath and Beyond (NASDAQ:BBBY) entered this month's earnings release in desperate need of a positive catalyst. Deteriorating fundamentals have driven BBBY stock down as much as 87% from its 2013 peak before the recent rebound. Fortunately, the company was able to deliver earnings that beat estimates (18 cents versus 17 cents) and report improved guidance for 2019. The stock soared almost 30% in the three days after earnings before pulling back on profit-taking. This three-day retracement is creating an attractive low-risk entry for traders anticipating further upside. BBBY is now above its 20-day and 50-day moving averages, so bulls have wrested control of the short-term trend. And volume patterns look constructive with large volume accompanying the breakout and light volume during this week's retreat. Once BBBY breaks above a prior day's high, buy the May $14/$19 bull call spread for around $1.75. The risk is limited to $1.75, and the reward is limited to $3.25. ### Nike (NKE) The technical posture of Nike (NYSE:NKE) has improved considerably since Christmas. With the 18% rally off the lows, NKE stock has climbed back above all major moving averages, returning to key horizontal resistance near $79. This level has kept a lid on the shares ever since October, which means its eventual break will signal a major victory for bulls. It will also set Nike shares up for a run toward their 2018 high of $86.04. * 10 Growth Stocks With the Future Written All Over Them Implied volatility has come in considerably, making long premium plays more tempting than short ones. Buy the March $80/$85 bull call spread for around $1.50. The risk is limited to $1.50, and the reward is capped at $3.50. ### Lululemon Athletica (LULU) Source: ThinkorSwim Lululemon (NASDAQ:LULU) rounds out today's trio and carries one of the best looking charts in the retail sector. Its recent trend reversal higher received a boost on Monday when the company raised its guidance for fourth-quarter earnings. LULU stock gapped up and has continued climbing each day since. It's now testing an important horizontal resistance threshold around $147. Breaking above it should clear the runway for a ramp toward its all-time high of $164.79. And with all major moving averages now rising beneath the price, I see few reasons why LULU won't continue pushing north. To bank on the continued upside, buy the March $145/$155 bull call spread for $4.25. The risk is limited to $4.25, and the reward is limited to $5.75. As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to protect your portfolio against a crash. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 3 Retail Stocks to Buy As They Rise From the Ashes appeared first on InvestorPlace.
Nothing much looks like it can stop Lululemon (NASDAQ:LULU) now. In fact, business is going so well for the Vancouver-based athleisure brand that it upped its top- and bottom-line guidance January 14, prompting several analysts to raise their target price for LULU stock. That's excellent news if you're a shareholder. Nike (NYSE:NKE) recently introduced its line of yoga wear in an attempt to capture some of Lululemon's action. Not only is Nike introducing its first yoga line (what took so long?), it's also providing free yoga workout regimens -- anywhere from 15 minutes to 45 minutes -- through the company's Nike+ Training Club app. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "These new workouts are really powerful because they offer the chance to practice no matter what your goal is or where you are on your yoga journey," Nike Master Trainer and yogi Leah Kim said about the workouts. "With the varying workout focus areas, lengths and poses, there is something for everyone -- from the beginner yogi looking to improve their practice to those who are more advanced." * 7 Oversold Small-Cap Stocks With Massive Profit Growth I've covered LULU stock for a long time. The one constant from detractors has always been that Nike and Under Armour (NYSE:UAA) would someday awaken to the fact that Lululemon is for real and put some effort into stealing some of its thunder. ### Has That Day Arrived? Not by a longshot. Yes, Nike is a much bigger company than Lululemon. In the last 12 months, Nike had $38 billion in revenue on a global basis, almost 13 times Lululemon's. But Nike is very late to the yoga party. It can't even hold a candle to Athleta, Gap's (NYSE:GPS) yoga-inspired brand, and that says all you need to know about the level of concern LULU CEO Calvin McDonald has for his much bigger rival. The reality is that Nike should have acted 2-3 years ago if it genuinely wanted to own this segment of the athleisure-apparel industry. So the question isn't whether Nike or Under Armour can steal LULU's thunder; the question is how big can Lululemon get? I'd say pretty darn big. ### Lululemon Has Barely Scratched the Surface If you follow Lululemon stock, you might be aware of the company's goal to hit $4 billion in revenue by the end of 2020. Given the company's latest guidance revision, I'd say there's a good chance for the company to hit the self-imposed target before the end of next year. Two things stand out from its latest guidance. First, it was expecting Q4 2018 same-store sales to hit low double-digit growth in the best-case scenario, with overall revenue of $1.13 billion at the top end of its previous forecast. Now, it expects Q4 2018 same-store sales growth to possibly hit high double-digits with revenues as high as $1.15 billion. That's $200 million in additional revenue. And remember, there are still two weeks left in the fiscal year and quarter. It's possible consumers could do more damage to their credit cards between now and then. Unlikely, but you never know. On the bottom line, which is what truly drives share prices, the company expects earnings per share of $1.72-$1.74, eight cents higher than the low-end of its previous guidance and seven cents higher on the top end. Cowen analyst John Kernan recently met with LULU CFO Patrick Guido and came away so impressed that he raised his price target by $3 to $188, providing 32% upside over the next 12 months. Considering the volatility of the markets over the final three months of 2018, it says a lot about Lululemon's current competitiveness. In fact, business has been so strong that the company could raise its 2020 targets when it announces fourth-quarter earnings in March. More likely, it will come up with a new five-year target -- I'd expect at least $6 billion -- and get to work to meet and exceed the new number. ### The Bottom Line on LULU Stock As McDonald said in the company's press release revising guidance, Lululemon had a very strong year. I expect it to have another strong year in 2019 and again in 2020. Investors continue to underestimate the company's desire to compete. It's important to remember that it continued to execute at a high level in 2018 despite the fact it didn't have a CEO for more than five months. That speaks to the dedication of the company's employees in the stores and at head office. * 10 Growth Stocks With the Future Written All Over Them The only thing that can stop Lululemon from ruling the world is a recession, and that's not likely until 2020. As apparel brands go, LULU is the one to own for the long haul. As of this writing Will Ashworth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Can Anything Stop Lululemon From Ruling the World? appeared first on InvestorPlace.
It's not too late to late to buy the banks, even after today's monster run, Jim Cramer told his Mad Money viewers Wednesday. In short, the banks are making more money than ever, Cramer said, and they're doing it with more technology and fewer employees. The fact is, shares of Goldman should never have been that low in the first place, Cramer said.
Jim Cramer says Lululemon, Yeti Holdings and Crocs offer insight into a different, higher-performing part of the broader retail sector.