|Bid||21.41 x 1200|
|Ask||21.42 x 800|
|Day's Range||21.23 - 21.76|
|52 Week Range||15.60 - 24.96|
|Beta (3Y Monthly)||0.64|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||20.96|
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
Investors concerned about holding shares of companies with slowing profit growth might look at Goldman Sachs' basket of stocks with earnings growth forecasts of 20% or higher in 2019. The firm’s list includes companies across industries such as Wellcare Health Plans (WCG), Incyte Corp.
On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains breaks down Under Armour's (UAA) Q4 and fiscal 2018 financial results and then dives into what's next for the athletic apparel firm as its North American struggles continue.
[Editor's note: This story was previously published in August 2018. It has since been updated and republished.]Another day. Another hack. Another reason to buy a cybersecurity stock. That has been my motto for the better part of the past few years, as a huge surge in digital data volume globally has been accompanied by an equally large surge in headline cyber attacks. The big one was the Equifax (NYSE:EFX) scandal back in mid-2017, but that incident is far from isolated. Everyone from Under Armour (NYSE:UAA) to Wendy's (NYSE:WEN) to Whole Foods to Uber to Yahoo and U.S. universities has dealt with a cyber attack of some sort over the past several years.Concurrent to the rampant rise in cyber attacks, demand for cybersecurity solutions has burgeoned, and cybersecurity stocks have bounced. The Prime Cybersecurity ETF (NYSEARCA:HACK) is up roughly 20% over the past year, almost double the S&P 500's return of 18%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe pace of these attacks will only increase as more valuable data shifts online over the next several years. As such, demand for cybersecurity solutions will continue to grow and cybersecurity stocks will continue to outperform. * 7 Financial Stocks With Accelerating Growth With that in mind, here's a list of 15 cybersecurity stocks that investors should watch over the next several years. Indeed, I think a few of them could be huge winners: Palo Alto Networks (PANW)When it comes to cybersecurity stocks, the cream of the corp is Palo Alto Networks (NYSE:PANW)."Another day, another hack, another reason to buy a cybersecurity stock" could just as easily read "another day, another hack, another reason to buy Palo Alto Networks stock." In other words, Palo Alto Networks is so big and so good at what it does that the company may as well be a substitute for the entire cybersecurity space.This dominance has manifested itself in a long and steady track record of 20%-plus revenue growth and healthy operating margin expansion, the sum of which has powered a 350% rally in PANW stock over the past five years.Recent numbers are strong, the uptrend remains intact, and analysts remain confident on the stock, so it is all around thumbs up for PANW here and now.Source: Dennis van Zuijlekom via Flickr Fortinet (FTNT)While Palo Alto Networks may be the cream of the corp in this industry, Fortinet Inc (NASDAQ:FTNT) isn't too far behind.This is another really big, really strong cybersecurity company that has a strong track record of 20%-plus revenue growth and strong share price gains. Over the past five years, FTNT is up 300%.Revenue growth isn't slowing at all (up 21% last quarter), implying that despite increased competition, Fortinet continues to ride secular tailwinds in cybersecurity to 20%-plus revenue growth. Thus, so long as cybersecurity tailwinds remain strong, FTNT stock should do well. * 10 Small-Cap ETFs That Pack a Wallop Analysts are worried about valuation here and now, with the stock trading at nearly 50X forward earnings. That does seem a little rich and this stock may be due for a correction in the near future. But thereafter, long-term tailwinds should drive FTNT stock higher.Source: Check Point Software Check Point (CHKP)Another cybersecurity industry titan is Check Point (NASDAQ:CHKP). And, as an industry titan, CHKP stock is a likely winner if cybersecurity tailwinds stay strong.But, CHKP stock has struggled lately. CHKP stock is up just 7% over the past year. A lot of the recent weakness in CHKP stock has to do with anemic revenue growth. Revenue growth was just 2% last quarter, an usually low mark for a cybersecurity giant.Long story short, it looks like competition is weighing on CHKP stock. Thus, go-forward growth prospects, while strong, are muddied by competitive threats. Granted, CHKP stock sports a reasonable valuation at just 20X forward earnings. But, that low valuation runs next to low growth, so the stock really isn't a bargain.Analysts aren't in love with this stock (they see less than 1% upside over the next 12 months), and the chart isn't all that great, either. Thus, while CHKP should head higher in the long run thanks to industry tailwinds, the outlook for the stock in the near- to medium-term is much less promising.Source: David via Flickr (Modified) FireEye (FEYE)I'd lump cybersecurity company FireEye (NASDAQ:FEYE) more into the Check Point pile than the Palo Alto Networks and Fortinet pile.This is a solid company with healthy industry drivers. But, revenue growth isn't robust (just 6% last quarter). Adjusted gross margins are inching higher, but not by much. The company is barely profitable, yet the valuation is fairly sizable at more than 3X trailing sales.As such, FEYE stock doesn't look like a huge winner in the big picture. * 5 Growthy Stocks Trading Below 15X Earnings That being said, there is an argument to buy FEYE stock in the near- to medium-term. Ever since the start of 2016, FEYE stock has been highly cyclical. In that cycle, the stock usually bottoms when the trailing sales multiple hits 3. Right now, we are just above 3. Thus, further weakness in the stock should be expected, but could turn into a medium-term buying opportunity. Proofpoint (PFPT)Proofpoint (NASDAQ:PFPT) is the nascent, hyper-growth player in the cybersecurity space.The company isn't all that big (under $6 billion market cap, versus nearly $20 billion for Palo Alto Networks). But, what this company lacks in size, it makes up for in growth. Revenue growth last quarter was 40%, and it was 40% the quarter before that, too.Because of this massive growth in a rapidly expanding industry, PFPT stock has done quite well. The stock is up nearly 300% over the past five years.Analysts think this stock heads higher. So do I. Growth rates are huge, the valuation is reasonable, and the chart looks good (big buy signal if the stock drops to $110, its 200-day moving average). Imperva (IMPV)There is a lot of noise surrounding Imperva (NASDAQ:IMPV) right now. But, I think that if you zoom out and look at the big picture, this is a cybersecurity company heading in the right direction.IMPV stock got slammed recently because of mixed quarterly numbers that included a big-cut to the full-year guide. The rationale behind the down-guide was that Imperva is transitioning to a subscription model, and that is adversely affecting revenue and profits in the near-term.Longer-term, though, this is the right move. We are entering the subscription economy era. Moreover, Imperva operates in a rapid growth area of cybersecurity (hybrid cloud), and that gives them exposure to huge tailwinds over the next several quarters. * 10 Smart Money Stocks to Buy Now Meanwhile, the valuation on IMPV stock is reasonable at only 4.5X sales. Thus, in a big picture, I think IMPV stock is headed in the right direction. But, IMPV won't be a big winner overnight, so expect some choppiness while Imperva's financials take a near-term hit from the subscription shift.Source: Shutterstock CyberArk (CYBR)Much like Proofpoint, CyberArk (NASDAQ:CYBR) is a cybersecurity company characterized by small scale but big growth.CyberArk is even smaller than Proofpoint (just a $2 billion market cap). But, growth is really big. Last quarter, revenues rose 35% year-over-year, and deferred revenue rose by more than 50%.Also much like PFPT, CYBR stock has been a big winner due to its big growth. Over the past year, CYBR stock is up 80%.Analysts think this run will continue, albeit at a much slower rate. That seems reasonable to me. This stock is slightly more expensive than PFPT, but growing at a slower rate, so if you are searching for growth in the cybersecurity space, I'd pick PFPT over CYBR.Source: Shutterstock Cisco (CSCO)One of the bigger companies on this list, Cisco (NASDAQ:CSCO), is much more than just a cybersecurity company. But, a big part of this company's turnaround narrative is centered on cybersecurity.That part of the Cisco narrative is doing well, and is powering improved financial results. But, Cisco as a whole remains a low-growth business with struggling margins. Moreover, laps are going to get tougher going forward, so slowing revenue growth is a risk this company is looking at it in the near- to medium-term future.That being said, CSCO stock is pretty cheap at just 16X forward earnings, and the chart looks pretty good. * 5 Stocks That Could Be the Next Amazon Big picture, CSCO stock has good, but not great, upside from here. It is a low-risk, low-volatility investment with a cheap valuation. But, it also lacks big-time growth drivers to unlock huge share price appreciation in the long-term.Source: Shutterstock Carbonite (CARB)Although it is one of the smaller names on this list, Carbonite (NASDAQ:CARB) has one of the better growth narratives in all of cybersecurity.This is a company that is positioning itself as a data protection company. Considering the volume of digital data is exploding higher right now on a global scale, data protection is the right niche to dominate over the next several years.Carbonite's numbers are really good. Revenues rose more than 30% last quarter. Gross margins are trending higher. Operating margins, too. Net profits are growing by a whole bunch from a small base.The valuation, meanwhile, isn't all that bad at 4X trailing sales. Plus, the stock is up more than 100% over the past year, and it has a bunch of positive momentum right now. Altogether, CARB stock looks like a winner.Source: Shutterstock Qualys (QLYS)The next cybersecurity stock to watch over the next several years is Qualys (NASDAQ:QLYS).The value prop of Qualys is getting enterprise customers to sign onto their platform, consolidate their security and compliance stacks, and cut IT spend. That is a pretty promising value prop, and a lot of customers are buying into it.Last quarter, revenues at Qualys rose more than 20%. Same with last quarter, and the quarter before that. Gross margins aren't soaring higher, but operating margins are moving higher as big revenue growth is driving opex leverage. * 3 Stocks With Breakout Potential From a valuation perspective, this hyper-growth cybersecurity stock looks fully valued at over 13X trailing sales. That is about as big as it gets in this industry, but Qualys isn't the biggest grower. Thus, going forward, valuation will likely weigh on share price performance.Source: Shutterstock Symantec (SYMC)Of all the stocks on this list, Symantec (NASDAQ:SYMC) is the one that has been under the most pain.SYMC stock is down more than 30% over the past year, mostly thanks to slowing revenue growth, which just turned negative. Considering competition in this space is only intensifying, it is discouraging to see revenue growth already dip into negative territory.That being said, SYMC stock is about as cheap as it gets in this sector. The stock trades at 2.5X trailing sales and 13X forward earnings. Those are pretty cheap multiples for exposure to cyber defense.If the growth trajectory for this company improves, SYMC stock could soar higher. Until then, though, SYMC stock will remain weak. There simply isn't much demand for zero-growth cyber defense stocks.Source: Shutterstock Akamai (AKAM)One cybersecurity stock with a very attractive and multi-faceted growth narrative is Akamai (NASDAQ:AKAM).The Akamai growth narrative is really quite broad. On one end, the company's fastest-growing segment is its Cloud Security solutions. Revenues in this segment are consistently growing around 25% to 35% year-over-year each quarter, and momentum is strong due to the security portfolio including new products.On the other end, Akamai provides solutions that enable the shift from linear content to internet content. This shift is only gaining momentum, and as such, Akamai's growth narrative and numbers are only getting better. * 5 Marijuana Stocks to Watch Valuation is a concern for this stock. But, the fundamentals are pretty good. Thus, while I don't think AKAM stock has another 20%-plus upside in its tank over the next 12 months, I do see this stock heading higher in a multi-year window.Source: Web Summit Via Flickr Splunk (SPLK)Another high-growth name in this space is Splunk (NASDAQ:SPLK).Splunk essentially operates in the world of turning data into actionable insights. This is a good place to be. It puts Splunk at the heart of a $55 billion addressable market. Revenues currently sit around $1.3 billion on a trailing 12 month basis, so there is clearly a long runway for big growth.But, revenue growth has been consistently slowing at SPLK. The valuation, however, has not compressed. That is a worrisome combination. With revenue growth last quarter under 40%, and the price-to-sales multiple above 10X, this stock looks unnecessarily risky here and now.Analysts have been moving to the sidelines on this name, and insiders are selling a bunch, so now might be the time to heed the warning signs.Source: Shutterstock F5 Networks (FFIV)F5 Networks (NASDAQ:FFIV) has been a winner to-date. But, that could change soon.There's no doubt about it. FFIV stock has been a cybersecurity winner. Over the past year, the stock is up 60%. Yet, despite the big run, the forward-earnings-multiple on FFIV stock remains below 20.Thus, the valuation is attractive. But, it is on top of what is projected as sub-10% earnings growth over the next several years. A 20X multiple for less than 10% growth isn't all the great, especially considering the market is trading at a lower multiple (17X) for bigger growth (16.5%). * 7 Strong Buy Stocks With Over 20% Upside Perhaps that is why most analysts have a price target on the stock that is below the current price tag. I think the analysts are right on this one. This feels like a low growth company with a big growth valuation. Cybersecurity tailwinds are strong, but there are better cybersecurity stocks on this list with more upside potential.Source: Shutterstock Zscaler (ZS)Freshly public and relatively small, Zscaler (NASDAQ:ZS) is one of the most exciting and risky cybersecurity stocks on this list.Zscaler went public at $16-per-share in March. The IPO was a huge success. ZS stock doubled in its first day of trading, closing at $33. The momentum hasn't really stopped. Today, ZS stock is around $40.The hype makes sense. Zscaler is a cloud security company with nearly 3,000 customers, a huge international presence, 50%-plus revenue growth and 80%-plus gross margins. The company is disrupting a huge, nearly $20 billion cloud and mobility market, and revenues last year were just $126 million.Thus, the long-term growth narrative supporting ZS stock is quite promising. But, this is nearly a $5 billion company that is expected to do under $200 million in sales this year, so the stock is trading at a rather huge 25X-plus sales multiple. That isn't a risk-off investment. As such, ZS is the high-risk, high-reward name in this cybersecurity bunch.As of this writing, Luke Lango was long HACK, PANW, FTNT and PFPT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post 15 Cybersecurity Stocks to Watch as the Industry Heats Up appeared first on InvestorPlace.
After the stock pullback, our 7.3% five-year industry forecast is about 325 basis points or 1.75 times above the 4% five-year market-implied growth on our reverse analysis—as well as the developing story of Constellation’s significant investment in Canadian cannabis-products developer Canopy Growth. The maker and marketer of performance apparel and footwear delivered a low-quality fourth-quarter beat, with adjusted EPS of nine cents coming in ahead of our three-cent estimate and its consensus estimate at four cents. Gross margin expansion of some 160 basis points was also relatively in line with our estimate, reflecting mixed benefits (channel, region), lower product costs, lower promotions, and lower air freight.
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.
Under Armour Inc NYSE:UAAView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and declining Bearish sentimentShort interest | NeutralShort interest is moderately high for UAA with between 10 and 15% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on February 13. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding UAA totaled $14.69 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Accelerating wage increases are putting pressure on profits, but Goldman Sachs finds that these companies are positioned to maintain their margins.
A combination of factors is helping push U.S. equities to fresh highs, with the Dow Jones Industrial Average rising to levels not seen since early December on Wednesday.These include hopes of a U.S.-China trade deal (with President Trump reportedly pushing back a tariff deadline), optimism over a budget deal in Congress (hopefully avoiding another government shutdown) and ongoing ease with the Federal Reserve's newly dovish stance.The bulls are going from strength to strength, shifting the focus of their buying as the post-December uptrend matures and changes its nature. From a focus on beaten-down big-cap technology stocks, new areas are piquing the interest of value hunters in areas like energy, industrials and healthcare.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best ETFs You Can Buy With that in mind, here are 10 hot stocks to watch as they lead the market higher: Philips 66 (PSX)Energy stocks like Philips 66 (NYSE:PSX) are coming back to life as crude oil starts to stir, with shares breaking out of a two-month resistance range as the 20-day moving average extends a rise above the 50-day average. Shares were recently upgraded by analysts at Tudor Pickering.The company will next report results on May 10 before the bell. Analysts are looking for earnings of $1.1 per share on revenues of $24.7 billion. When the company last reported on Feb. 8, earnings of $4.87 beat estimates by $1.98 per share on revenues of nearly $29 billion. Hess (HES)Hess (NYSE:HES) is another energy stock to watch, with shares moving to challenge the 200-day moving average to cap what looks like an inverse head-and-shoulders reversal pattern that traces a move to back to the early October high near $75. The company, along with ExxonMobil (NYSE:XOM) recently announced positive results from two offshore wells in Guyana. * 10 'Buy-and-Hold' Stocks to Own Forever The company will next report results on May 1 before the bell. Analysts are looking for a loss of 21 cents per share on revenues of $1.59 billion. When the company last reported on Jan. 30, a loss of 31 cents per share beat estimates by 7 cents on a 30.3% rise in revenues. AMD (AMD)AMD (NASDAQ:AMD) shares are consolidating a recent breakout, with the 20-day moving average extending away from its 50-day and 200-day moving averages presaging a break of prior highs and a challenge of the September levels. This would be worth a gain of more than 50% from here. In its most recent quarter, despite weak guidance from management, investors focused on a 9% increase in revenues for its computing and graphics segment thanks to a ramp in its Ryzen processors.The company will next report results on April 30 after the close. Analysts are looking for earnings of 2 cents per share on revenues of $1.25 billion. When the company last reported on Jan. 29, earnings of 8 cents per share matched estimates on a 5.9% rise in revenues. Microsoft (MSFT)Microsoft (NASDAQ:MSFT) shares look ready to emerge from a sloppy looking downward channel that started back in October with a break above a resistance line near $108. Such a break would set up a challenge of the early December high near $112, which would be worth a gain of 5% from here. * 10 Stocks That Every 20-Year-Old Should Buy The company will next report results on April 25 after the close. Analysts are looking for earnings of $1 per share on revenues of $29.9 billion. When the company last reported on Jan. 30, earnings of $1.10 beat estimates by a penny on a 12.3% rise in revenues. General Dynamics (GD)General Dynamics (NYSE:GD) shares are holding steady above their 20-day and 50-day moving averages, setting up a run at the prior highs near $185, which coincides with the 200-day moving average. Defense stocks have constantly been listed as hot stocks amid fresh tensions with Iran and steady budgetary support from the Trump White House and Congress.The company will next report results on May 1 before the bell. Analysts are looking for earnings of $2.45 per share on revenues of $9.3 billion. When the company last reported on Jan. 30, earnings of $3.07 per share beat estimates by 8 cents on a 25.4% rise in revenues. Deere (DE)Deere (NYSE:DE) is strongly tied to the fate of U.S.-China trade negotiations, given its focus on heavy machinery as well as agriculture equipment used for U.S. food exports. As such, shares are consolidating near prior highs set in early 2018. Watch for an upside breakout following the release of confidence guidance from management. * 7 Reasons to Own Coca-Cola Stock The company will next report results on Feb. 15 before the bell. Analysts are looking for earnings of $1.8 per share on revenues of $6.9 billion. When the company last reported on Nov. 21, earnings of $2.30 per share missed estimates by 15 cents on a 17.6% rise in revenues. DR Horton (DHI)DR Horton (NYSE:DHI) shares have climbed back up and over their 200-day moving average, setting the stage for a sustained move to test the prior high set in August. In its most recent post-earnings call, management noted that buyer traffic remained strong -- raising hopes for a strong spring selling season.The company will next report results on April 26 before the bell. Analysts are looking for earnings of 86 cents per share on revenues of $4 billion. When the company last reported on Jan. 25, earnings of 76 cents per share missed estimates by a penny on a 5.6% rise in revenues. Johnson & Johnson (JNJ)Johnson & Johnson (NYSE:JNJ) shares are extending above their 50-day and 200-day moving averages, looking ready for a run at the prior highs as worries about a baby powder lawsuit fade. The company recently unveiled a plan to buy robotics company Auris Health for roughly $3.4 billion. * 7 Reasons Stock Buybacks Should Be Illegal The company will next report results on April 23 before the bell. Analysts are looking for earnings of $2.1 per share on revenues of $19.7 billion. When the company last reported on Jan. 22, earnings of $1.97 per share beat estimates by 2 cents on a 1% rise in revenues. Under Armour (UAA)Under Armour (NYSE:UAA) shares have bounded above their 200-day moving average to close in on levels not seen since early December, capping a rise of 33% from its recent lows. While shares remain mired in a three-year-old sideways range, watch at the very least for a retest of prior channel highs near $24, which would be worth around a 10% gain from here.The company will next report results on May 14 before the bell. The company last reported results on Feb. 12, with earnings of 9 cents per share beating estimates by 5 cents on a 1.5% rise in revenues. The company remains in turnaround mode here at home, with revenues falling 6% in North America in the most recent quarter. But international growth remains a bright spot, up 24%. Freeport-McMoRan (FCX)Shares of Freeport-McMoRan (NYSE:FCX) are looking ready to emerge from a multi-month basing pattern going back to October, with the 20-day moving average extending a move above its 50-day moving average as the new uptrend gains momentum. The company was recently upgraded by Morgan Stanley analysts citing expectations that the company is likely to see an earnings boost from higher copper prices. * 7 Athletic Stocks That Could Run Higher The company will next report results on April 23 before the bell. Analysts are looking for earnings of 10 cents per share on revenues of $3.8 billion. When the company last reported on Jan. 24, earnings of 11 cents per share missed estimates by 8 cents on nearly a 27% drop in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post 10 Hot Stocks Leading the Market's Blitz Higher appeared first on InvestorPlace.
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.
In this updated daily bar chart of UAA, below, we can see a broad sideways trading range market but recently the chart has gotten stronger. Volume really jumped and this has turned the On-Balance-Volume (OBV) line up and close to a new high. A new high in the OBV line would be leading the price action.
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.
Shares of Under Armour (NYSE:UAA) rose sharply on Tuesday after the athletic apparel company reported healthy fourth-quarter numbers which topped revenue and profit expectations. UAA stock price rose 10% on the day and is already giving back some of those gains this morning.Source: Shutterstock UAA stock is now up more than 80% since bottoming out around $12 in late 2017. Some bulls are pounding on the table and saying recent numbers underscore that this big Under Armour turnaround is only halfway done. The numbers actually say otherwise. At its core, Under Armour is an athletic apparel company with staying power in the secular growth athletic apparel industry. But the company is also losing relevance and popularity within that industry. The competition is only getting bigger and better, and Under Armour isn't adapting quickly enough. As such, this will remain a slow revenue growth company with depressed margins for the foreseeable future. * The 7 Best Video Game Stocks to Power Up Your Portfolio! At $22, Under Armour stock is fully priced considering that bleak reality. Potential upside into the end of the year looks limited, and this rally (much like previous rallies towards $25) will likely end with a big drop toward $20.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's a drop worth buying. Until then, the best thing to do with UAA stock is stay away as it closes in on $25. Under Armour's Numbers Weren't That GoodBulls want to rally around the headline Q4 double beat. But, underneath that headline, there were some serious problems with Under Armour's numbers in the quarter. Those problems include: * Revenue growth was just 3% in the quarter, 4% for the year, and expected to be 3.5% next year. Those aren't very strong growth rates, especially for a company with broad exposure to the rapidly growing athletic apparel space. They also don't scream "big turnaround is coming". Instead, with revenue growth set to cool next year, they actually imply that this turnaround is on its last legs. * North America revenues dropped 6% in the quarter. That ends a multi-quarter streak of North America business stabilization, and implies that this business will continue to struggle for the foreseeable future. * While gross margins are expected to rise by 70 basis points next year, the operating profit guide implies less than 70 basis points of expansion on the operating margin line. That's a big hit on the long-term margin expansion narrative, since without falling opex rates, it will be tough for gross margin expansion alone to drive operating margins materially higher in the long run.Overall, while Under Armour's Q4 numbers and fiscal 2019 guide weren't bad, they weren't good either. If anything, they indicate that this company is stabilizing, but that the big turnaround has already happened. Fundamentals Limit UpsideThe model for Under Armour isn't terribly hard.The athletic apparel market globally is growing at a steady 7% annualized rate. Under Armour, a sub-5% revenue growth company, is losing share in that market, and will continue to lose share given the company's inability to transform into a lifestyle brand and penetrate the athleisure market at scale. As such, Under Armour will remain a sub-5% revenue growth company for the foreseeable future.Gross margins will continue to trend higher as the company pushes DTC sales and gets product back into full price distribution channels. But, the lack of opex leverage expected in 2019 is problematic. Opex rates will fall over time. But, not by that much since revenue growth won't be that big. Thus, we are talking slight gross margin expansion and slight opex leverage for the foreseeable future.Overall, Under Armour can probably continue to grow revenues by 4-5%, and improve operating margins to 10% by fiscal 2024.Under those assumptions, $1.30 in EPS seems achievable by fiscal 2024. Based on a Nike (NYSE:NKE) average 25 forward multiple, that equates to a 2023 price target of $32.50. Discounted back by 10% per year, that equates to a fiscal 2019 price target for UAA stock of about $22.Thus, as UAA stock closes in on $25, upside into the end of the year looks limited. Bottom Line on UAA StockUnder Armour is a fine company in a great industry. But, the stock price currently reflects optimism that things will get better. They won't. At best, Under Armour defends its position, and operations stabilize. At worst, competition continues to eat away at Under Armour, and things get worse. * 9 U.S. Stocks That Are Coming to Life Again Consequently, this current rally towards $25 will -- much like prior rallies to $25 -- ultimately end in disappointment for bulls.As of this writing, Luke Lango was long NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post Why Under Armour Stock Won't Hit $25 appeared first on InvestorPlace.
Though a challenging competitive environment continues to weigh on sales, efforts to make Under Armour more profitable are paying off.