|Bid||19.580 x 1200|
|Ask||19.590 x 3200|
|Day's Range||19.40 - 19.68|
|52 Week Range||13.62 - 23.28|
|Beta (3Y Monthly)||0.42|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 25, 2018 - Apr 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||15.00|
Manny Machado is reportedly heading to the San Diego Padres after agreeing to a 10-year, $300 million deal free agent contract. Despite ratings being down, Mike Oz, a Yahoo Sports MLB writer, says he’s “all for the players getting these big contracts” because “everyone in the ballpark is making a lot more money.”
Kevin Plank has cultivated a wide circle of celebrities since founding Under Armour Inc. more than two decades ago. As the company has grown from a small startup to a global force in athletic apparel, some have even accompanied the chief executive on the private jet he leases to Under Armour. Often in recent years, said a number of current and former executives, he has turned to one in particular for business advice: MSNBC anchor Stephanie Ruhle.
For Nike (NYSE:NKE), the news all seems good at the moment. Not even hot NBA prospect Zion Williamson and his incredible exploding Nike shoes can really dent the stock. Even after the "backlash," Nike stock is just 2% shy of its all-time high reached in September. Analysts, too, have turned bullish on Nike, and a strong rally that began in December shows no signs of slowing.Source: Shutterstock Right now, it seems like the gains in Nike stock should continue. And perhaps they will. But I've been cautious on NKE stock despite the rally, and I remain so at $83.65.The news all seems good -- and maybe great -- at the moment. Still, there are risks that could trip Nike up as 2019 rolls on.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Risks to Nike Stock: ChinaChina has been a significant catalyst for Nike stock of late. Greater China, according to Nike filings, drove 15% of sales in the first half of fiscal 2019. But sales in the region rose 25% year-over-year in the first two quarters, contributing more than one-third of the company's total revenue growth. More importantly, per the 10-Q, China drove 81% of the total increase in earnings before interest and taxes (EBIT). * 7 Healthy Dividend Stocks to Buy for Extra Stability For major American brands, China has been a mixed bag of late. Starbucks (NASDAQ:SBUX) did see some deceleration in the market in its fiscal first quarter, but SBUX stock has rallied nicely. Apple (NASDAQ:AAPL) has seen significantly weaker sales and lower pricing in China, leading to pressure on its stock.Sales in China will be closely watched when Nike reports third-quarter earnings next month.If Nike can deliver, even in what looks like a weaker macro environment, the optimism toward China will only grow. If there's any sign of weakness, however, investors might start to wonder from else Nike can drive 20%-plus growth. The answer, at this point, is nowhere. Risks to Nike Stock: The Economy (and the Stock Market)A slowing Chinese economy raises a potential risk to Nike. But the same is true in many other markets. Nike's margins have improved of late as the company has been able to take pricing. Confident consumers are willing to pay full freight for in-demand products.In addition, increasing direct sales have allowed Nike to work around retailers like Foot Locker (NYSE:FL) and capture even more dollars. But even with both those benefits, earnings growth hasn't been that spectacular. In North America, for instance, first-half EBIT rose 10%.There are risks to Nike's growth both in North America and overseas. In the U.S., in particular, investors seem reasonably sanguine. But another panic could lead stocks lower. And the 20%-plus decline in Nike stock from early October to mid-December shows that market-wide pressure can have a big impact. Risks to Nike Stock: ValuationThe most pressing question at the moment is valuation. Nike stock trades at its highest multiples in years. NKE is valued at 32x FY19 consensus EPS and 27x fiscal 2020 estimates.This is a great company - and a stock worth paying up for. But at a certain point, valuation matters - and we're likely at that point. Nike's growth is expected to accelerate going forward - one reason the Street is behind the stock.NKE stock, however, is catching up to even those most bullish analysts. The average analyst target price is $87.33 - just 3% above the current levels. It now trades at a significant premium to rival Adidas AG (OTCMKTS:ADDYY), although a discount to Under Armour (NYSE:UA, NYSE:UAA).It will take a big Q3 report next month to push those analysts to update their models. And I can see why investors wouldn't want to bet against Nike posting that type of growth - particularly with the company's track record of topping expectations.Still, to get there, pretty much everything has to go right for Nike. Right now, everything is -- but if that changes, the trajectory of Nike stock could do the same.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post What Can Go Wrong for Nike Stock? appeared first on InvestorPlace.
A Wall Street Journal story says the Under Armour board asked Kevin Plank "about the nature of the relationship" and whether company assets were used.
Ruhle flew on Plank's personal jet and offered him business advice, according to The Wall Street Journal.
Lululemon Stock Fell on Rating Downgrade from Instinet(Continued from Prior Part)Forward valuationAs of February 19, Lululemon (LULU) was trading at a 12-month forward PE (price-to-earnings) ratio of 33.5x. The forward valuation multiple has
Lululemon Stock Fell on Rating Downgrade from InstinetRating downgrade Lululemon (LULU) stock fell 2.3% on February 19 after Instinet downgraded the stock from “buy” to “neutral” over valuation concerns. Instinet, however, raised its price
First Insight, Inc., a technology company transforming how leading retailers make product investment, pricing and marketing decisions, today announced the addition of more than 60 new retail and brand partners to its Customer-Centric Merchandising Platform. New First Insight customers span the entire retail spectrum, including digitally native brands, traditional retailers, and wholesale brands and licensees, with brands including Under Armour and Crocs. “We are excited that the retail industry continues to embrace our Customer-Centric Merchandising Platform,” said Greg Petro, CEO of First Insight.
Shares of Nike (NYSE:NKE) have been sprinting higher, giving investors a good old case of the FOMOs (fear of missing out). Hindsight is 20/20 of course, but investors had a terrific opportunity to gobble up Nike stock in late-December, right as the overall market was capitulating."Well duh, we had a great chance to buy almost every stock in late-December, Bret."Obviously most stocks were under pressure as the markets tumbled into the Christmas holiday, but NKE stock was a unique situation. That's because the company just turned in a strong fiscal-second quarter earnings report on Thursday, Dec. 20. The market bottomed on Monday, Dec. 24, was closed the next day and started its surge on Dec. 26.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Leading the Market's Blitz Higher Of course the market completely ignored this common-sense rationale and slammed Nike stock lower with the rest of the Dow. But longer term investors with an ounce patience recognized the situation for what it was: A buying opportunity. Lacing Up with Nike StockLast quarter, earnings of 52 cents per share came in seven cents a share ahead of expectations. Revenue of $9.37 billion topped estimates by $200 million and grew 9.6% year-over-year (YoY).Aside from a top- and bottom- line beat, gross margins topped consensus estimates while inventories decreased YoY. Growth and margin expansion were led by Nike's direct-to-consumer business.Overall, it was a strong quarter for the company and that's when investors should have been jumping all over NKE. Worth noting, the company is almost done with its four-year $12 billion share buyback plan. That means Nike will soon embark on its four-year $15 billion buyback plan.Over the last few days, shares have been getting an extra boost. That's as a potential trade deal between China and the U.S. is growing increasingly likely. That's a plus for Nike, which does considerable business in China. But shares have also been on the move following an earnings and revenue beat and solid outlook from Under Armour (NYSE:UAA, NYSE:UA).That gives Nike stock investors confidence that it's business as usual for the king of sports apparel.As it stands, analysts expect Nike to earn $2.65 per share this year, 11% growth from fiscal 2018. In fiscal 2020 (next year, but begins in two quarters), expectations call for 18.5% earnings growth. Further, forecasts call for 7.8% revenue growth in both years.That's a solid growth profile if Nike can achieve it. Even more so, if the company can accelerate its earnings growth in the significant manner that analysts currently expect, it will represent growing profitability and give investors one more reason to justify buying the stock. Trading NKE Stock Click to EnlargeThere's a difference between a broken stock and a broken company. The former, like Nike in December, is a company with strong fundamentals but a stock is disarray. The latter adds fundamental turmoil to the situation.So the question is, can Nike stock get to $100 a share? According to Oppenheimer analysts' new price target, the answer is yes. "We have turned even more impressed with the underlying operating prowess of the company and its brand," the analysts said, noting that margins should continue to improve.NKE stock is coming in hot to its prior highs. As such, shares sport an RSI reading of 76 (green circle), suggesting an overbought condition. This isn't a reason to sell the stock, but it is a consideration on waiting for a pullback and/or some consolidation.Is it possible that Nike powers through resistance to new highs and becomes even more overbought in the short term? Of course! My thought is that we'll eventually get a trade deal with China, but I would be surprised if don't get some negative headlines first. Something like, "Trade Deal in Jeopardy," or "U.S.-China Trade Talks Stall."That could send Nike and a host of others into a pullback and that could be our buying opportunity. As it stands, I'm waiting on Nike stock. But a trade deal coupled with a breakout over $86 could send NKE stock to $100 this year.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best ETFs You Can Buy * 7 Reasons Stock Buybacks Should Be Illegal * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? Compare Brokers The post Nike Stock Is Set to Surge to $100 Sooner Than You Think appeared first on InvestorPlace.
Accelerating wage increases are putting pressure on profits, but Goldman Sachs finds that these companies are positioned to maintain their margins.
Growth was roughly split between Wholesale and Direct-to-Consumer, with DTC accounting for 41% of the business in Q4 (for the year, DTC accounted for 35% of UA's revenues). North America struggled as expected, with revenues contracting 6% year-over-year (well below the high-single digit growth that Nike (NKE) has reported in North America in recent quarters). As a result of this discrepancy, International continues to represent a larger piece of Under Armour's business, accounting for 30% of revenues in the fourth quarter.
Under Armour Inc (NYSE: UAA ) shares rose after the apparel maker reported a surprise fourth-quarter earnings beat . Still, several Wall Street analysts said in research reports that they're are unconvinced ...
Under Armour says its North American business has stabilized after revenue declines, and inventory control is key for 2019.
Margins could be turning around at (UAA) and that could be enough to keep driving the stock higher, UBS’s Jay Sole says. The company reported better-than-expected earnings Tuesday of nine cents per share and $1.39 billion of revenue, which sent Under Armour stock (UAA) up 8%, continuing a rebound. The Canaccord analyst noted ahead of Under Armour’s earnings that sales at the company’s main competitors—Adidas (ADS.Germany), (LULU) (LULU), and (NKE) (NKE)—are growing three to five times faster than at Under Armour.
Though a challenging competitive environment continues to weigh on sales, efforts to make Under Armour more profitable are paying off.
Under Armour (NYSE:UA, NYSE:UAA) shares moved higher after the company's earnings report on Feb. 12. Both classes of Under Armour stock gained. As of this writing, UA shares are up 6% and UAA stock is higher by 7.4%. Click to Enlarge Source: Shutterstock The divergence in performance adds to the long-running -- and still unexplained -- valuation gap between UA and UAA shares. But the fact that both classes of Under Armour stock have rallied itself is odd. Q4 earnings were solid, admittedly. But guidance for 2019, which should matter more to a forward-looking market, was left unchanged.With UAA stock already up 18% before earnings, the report hardly seems strong enough for more upside. And it leaves Under Armour stock, which I thought was a sell in December, in a precarious position going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Under Armour Stock Rises After EarningsIn terms of expectations, Under Armour earnings admittedly look solid. Adjusted earnings-per-share of 9 cents was 5 cents better than consensus of 4 cents, and a noted improvement from a breakeven performance the year before. Revenue rose 1.5% to $1.39 billion, about $10 million ahead of the Street. * The 7 Best Video Game Stocks to Power Up Your Portfolio! Expectations aside, however, the performance is hardly impressive. Sales in North America dropped 6% year-over-year in Q4, driving a full-year 2% decline in that market. Given that Nike (NYSE:NKE) has executed a dramatic reversal in its North American business, Under Armour is clearly losing share domestically. Questions persist surrounding the company's retail strategy of selling full-price at outlets like Dick's Sporting Goods (NYSE:DKS) and at a discount at Kohl's (NYSE:KSS).There is good news, admittedly. International sales continue to grow nicely. Those markets -- now about a quarter of total revenue -- are key to the long-term strategy. And Under Armour is recovering some of the margins it has lost in recent years, with its adjusted gross margin up 160 bps in Q4.Bulls, then, can argue that Under Armour's turnaround is progressing. That's actually true. But to at least some extent that's already priced in. And looking at guidance for 2019, it's a surprise that Under Armour stock has continued to rally. Guidance and UAA StockAt its Investor Day in December, Under Armour laid out five-year targets for its turnaround. The market wasn't impressed. Under Armour stock had already fallen heading into the report, and it continued plunging afterward. The two declines combined led Under Armour stock down 30% in less than three weeks.Obviously, broad market weakness in December didn't help. But even considering a notable change in sentiment for the market as a whole, the rally in UAA stock on Wednesday made little sense. The stock already had recaptured much of those losses, but little changed in the story on Wednesday looking forward. The 2019 outlook was reaffirmed. Under Armour still sees EPS of just 31 cents to 33 cents this year, implying a 67x price-to-earnings ratio (on the high-end of guidance) for UAA stock.That single metric doesn't make Under Armour stock a sell. But the rally of the past few weeks does seem confusing and potentially unsustainable. It was the long-term outlook in December that spooked investors. That outlook suggests something like $1 in EPS in 2023. Yet UAA stock now trades at 22x that long-term figure. * The 3 Best Chinese Stocks to Buy for a Long-Term Portfolio More notably, UAA now has recaptured all of the post-Investor Day selloff. That seems like too much. Luke Lango wrote at the time that the outlook confirmed that $20 was too much to pay for UAA stock. The stock now is over $22. What drives more upside? The Risks to UA and UAAThe aggressive move in UA and UAA of late creates two key risks. The first is that in 2019, Under Armour now has to outperform. If five-year targets weren't enough in December, and they haven't changed since, then investors are pricing in better-than-expected results. Any quarter going forward that isn't a big beat is likely to lead to a selloff in Under Armour stock.The second risk is that UAA stock also looks reliant on broad market trends. What is now a 26% rally year-to-date is coming solely from the fact that investors are more bullish in 2019 then they were at the end of 2018. When that bullishness fades -- or again reverses -- UAA will be left in a precarious position.Again, this is not to say that there's no good news in Under Armour earnings. The turnaround is on track. International sales and margin expansion are key parts of the story.But this is also a company losing market share in North America, where revenues in 2019 are expected to be flat and its stock is trading at 60x+ 2019 earnings. A turnaround of some kind is already priced in. From these levels, for UAA to gain, the progress needs to accelerate. And it's not clear why investors see the Q4 report as evidence that acceleration is on the way.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post Under Armour Stock Rallies After Earnings … But Why? appeared first on InvestorPlace.
Under Armour’s turnaround plan is looking like the plan that will never end. On Tuesday, the sportswear company reported fourth-quarter earnings of 9 cents a share and revenue of $1.39 billion. International sales, which now account for 28% of total revenue, provided a brighter spot, climbing 28%.