|Bid||23.43 x 4000|
|Ask||23.63 x 2200|
|Day's Range||23.23 - 23.66|
|52 Week Range||16.52 - 24.96|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||1,681.43|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.08|
Under Armour got an upgraded rating from JP Morgan after speaking with the athletic apparel company’s CEO and members of the executive team. Emily McCormick joins Seana Smith on ‘The Ticker’ to discuss Under Armour’s sales growth and it stacks up against other athletic apparel competitors.
Earlier this month, Under Armour (UA)(UAA) reported financial results for the first quarter of fiscal 2019. Growth in the quarter was in the Wholesale business (up 5% to $818 million), with Direct-to-Consumer (DTC) revenues declining 6% to $331 million. In the quarter, DTC accounted for 27% of Under Armour's revenues.
The sporting goods retailer has warned it's going to be a while yet before growth returns.
Footwear retailer Foot Locker reports earnings, and durable goods order for April will be released Friday morning.
The bears pushed back, again, lengthening what has become some very indecisive action for stocks. The S&P 500's modest 0.28% slide wasn't terrifying, but it did represent another failed effort to crawl back above its key 50-day moving average line.Source: Allan Ajifo via Wikimedia (Modified)Qualcomm (NASDAQ:QCOM) led the way, tumbling almost 11% in response to reports that it has been found in violation of U.S. antitrust laws. Sprint (NYSE:S) wasn't far behind though, with its 7.6% setback after the Department of Justice recommended its impending merger with T-Mobile (NASDAQ:TMUS) be blocked.While not nearly as many, there were a handful of winners on Wednesday. Chief among them was Target (NYSE:TGT). Shares of the retailer rallied almost 8% yesterday on the heels of an encouraging Q1 print.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Names That Are Screaming Stocks to Buy None of those names are especially compelling trading prospects headed into today's session, however. Rather, it's the stock charts of Cadence Design Systems (NASDAQ:CDNS), Nordstrom (NYSE:JWN) and Under Armour (NYSE:UAA) that are worth the closer looks. Under Armour (UAA)Athletic apparel company Under Armour is a well-known brand, but years of expensive decisions caught up with the company in 2016. Nervous investors finally expressed their concern with a steep selloff.Under Armour finally started to work on its issues in 2017, and investors responded accordingly. That is, UAA stock began to rise again. A technical ceiling has taken shape in the meantime though, and while it's a clear problem, it's also a clear potential catalyst if it can be hurdled. And, the stock is catching a pretty healthy tailwind. Click to Enlarge * The technical ceiling in question is around $24.60, near where UAA has topped out several times since the middle of last year. That line is plotted in blue on both stock charts. * Although it hasn't been able to break above $24.60 yet, UAA has left behind a trail of higher lows. The most recent low was made by a push up and off the white 200-day moving average line, highlighted on the daily chart. * The tide is bullish, but there's a gap from last week that needs to be filled, and for Under Armour shares, volatility is the norm. Any breakout may not take shape straightaway. Cadence Design Systems (CDNS)Monday's tumble from Cadence Design Systems shares could have been chalked up as an effort to close the bullish gap left behind in April. Generally speaking, the market doesn't like to leave gaps unfilled. That selloff was a good start to that effort, even if it didn't actually touch that all-important April 22 low of $64.27.The gap still hasn't been filled either, as CDNS bounced a bit on Tuesday, and Wednesday's lull wasn't terribly devastating. The tendency to fill in gaps, however, may have done some other technical damage to Cadence Design Systems that will lead to more downside anyway. * The 7 Best Penny Stocks to Buy Click to Enlarge * The chief damage done is the move below the 50-day moving average line, plotted in purple on both stock charts. That line appears to be something of a technical ceiling now. * Underscoring the way the tide has turned is the volume surges behind Monday's and Wednesday's selloffs. * Zooming out to the weekly chart it's easy to see just how overbought CDNS was as of last month, and how vulnerable it was and still is to profit-taking. Shares rallied 70% from their December low to their early May high. Nordstrom (JWN)At first glance, Wednesday's big stumble from Nordstrom would be alarming. It has been one of the bigger victims of the so-called retail apocalypse, and shares have been underperforming for years. A disappointing Q1 only underscores that worry.Yet, a closer look at yesterday's 9.2% setback -- and the lead into it -- suggests that sharp loss may actually be something of a capitulation that ultimately turns into a buying opportunity. Click to Enlarge * Wednesday's bar was a doji, where the open and close are in the middle of the bar. This indicates that an equilibrium between the buyers and the sellers was met. The volume spike yesterday is also something often seen at key pivot points. * On the weekly chart, we can see JWN hit a new multi-year low, falling under 2016's low of just under $35. In many cases, traders are waiting to see prior lows met or exceeded before stepping back in. * Also on the weekly chart, it's clear that the RSI line doesn't stay in an oversold state for very long.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 3 Big Stock Charts for Thursday: Nordstrom, Cadence Design Systems and Under Armour appeared first on InvestorPlace.
As stocks go, Nike (NYSE:NKE) continues to be one of the most consistent performers in the S&P 500. Since May 23, 2014, Nike stock has more than doubled from $37.92 to $83.64 as of the May 23 close. Additionally, the five-year total return for NKE stock is 18.6%, 764 basis points better than the index.Source: rodrigofranca via FlickrThe athletic-apparel maker is a paragon of consistency, both financially and in the markets. Therefore, I don't think it's a stretch to wonder if the Nike stock price can double over the next five years like it did the five just passed.StockTwits founder Howard Lindzon has held Nike stock in his "8 to 80" portfolio for several years. These are stocks that people want to own because they also use their products and services regularly. I call that "Everyday Investing." It's a concept that I modeled after Peter Lynch's theory that you should invest in what you know.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdmittedly, this concept isn't 100% foolproof, as the case of General Electric (NYSE:GE) demonstrated. But Nike is a much different company with fewer moving parts than the down-on-its-luck industrial conglomerate. * 7 Safe Stocks to Buy for Anxious Investors In my opinion, NKE stock has a great shot at doubling to $185 by May 23, 2024. But to do so, Nike must capture the women's market if it wants to get there. Here's why: Lululemon vs. NikeIf anyone can take down Lululemon (NASDAQ:LULU), the leader in women's athletic apparel, it would have to be Nike.InvestorPlace contributor Luke Lango recently highlighted the women's market as an important goal for the company on its way to $100 and beyond."At the current moment, Nike's revenues are dominated by the men's segment. The women's business accounts for less than a quarter of its total revenues," Lango wrote May 8. "But the global women's athletic apparel and footwear market is 50% larger than the men's athletic apparel and footwear market."Luke recommended an April CNBC article by Lauren Thomas. I'd second that recommendation. It's well written and provides the reader with a good understanding of Nike's overall business.Nike had $36.4 billion in revenue in 2018. Of that, $24.0 billion was wholesale to external customers, $10.4 billion was from Nike's brick-and-mortar and online stores, while the remainder was primarily from Converse.Of the $30.3 billion in wholesale (it includes $6.3 billion to Nike Direct), $6.9 billion was women's, 22.8% of the company's overall 2018 revenue.In April, Lululemon stated that it wants to double its men's revenue by 2023. In 2018, the men's business accounted for 20% of LULU's overall revenue of $3.3 billion. That means that Lululemon's women's business generated $2.6 billion in 2018 with men delivering $660 million.Here's what is most surprising about Lululemon: it skyrocketed from zero penetration in the men's market to 20% in just six years. Considering it's about one-fifth the size of Nike, it's a very impressive stat.If I owned Nike stock, I'd be concerned that Lululemon will soon generate more revenue from the men's market as a percentage of its overall sales than NKE does from the women's market. How Does Nike Stock Get to $185?Nike has never been very good at acquisitions.It couldn't do much with Bauer in hockey. It hasn't done much with Converse in streetwear, and it failed to do much with Cole Haan in the shoe market.However, there's a first time for everything. If management wants NKE stock to hit $185 by May 2024, they have a quick solution: acquire Lululemon.Once upon a time when Under Armour (NYSE:UA, NYSE:UAA) was in a much stronger position, I suggested that LULU and Under Armour merge to fight Nike.Today, LULU could buy Under Armour, but why would it? It's got growing women's and men's markets, strong digital sales, and increasing business in consumer-friendly Asia.Nike likely wouldn't pull the trigger, given its poor history. But it should set past disappointments aside because Lululemon continues to demonstrate why it's a leader in athletic wear.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Can Nike Stock Hit $185 In the Next Five Years? appeared first on InvestorPlace.
V.F. Corp (VFC) fourth-quarter fiscal 2019 results gain from strong top-line growth and strength in core brands as well as international and DTC businesses.
Shares of Under Armour (NYSE:UAA) traded significantly higher in mid-May on a bullish note from JP Morgan, who upgraded Under Armour stock to Overweight with a $29 price target, implying ~30% upside over the next twelve months.Source: Shutterstock The bull thesis from JP Morgan is pretty simple. Under Armour has struggled significantly over the past several years with its product assortment and that has led to building inventories amid stagnant sales.In order to clear that inventory, Under Armour has had to run deep discounts on its merchandise, sell into lower-priced channels, and slow new product roll-out. Those moves stabilized sales, but they also diluted brand equity and dragged on margins. Net result? Profits were wiped out.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Over 20% Upside Potential Inventory levels are dropping fast and now sit at their lowest level in several years. Management thinks this "down-sizing" era is over. Inventory levels are now appropriately low. Discounting will stop. Lower-priced sell-through will stop, too. The company can now put out new premium product, which should lift brand equity and margins. Net result? Profits should come soaring back.Consequently, while Under Armour is still in the early stages of this pivot, JP Morgan thinks now is the time to buy into Under Armour stock.But, this argument misses two critical risks: competition and valuation. Ultimately, those two risks will cap near to medium term upside in Under Armour stock. Competition Risks Are SizableBroadly speaking, the big growth niche in the athletic apparel space is in the convergence of athletic and leisure styles, and Under Armour has failed to keep pace with peers on the athleisure front.The rise of the internet and specifically visual-first social media has made consumers more aware of their image, health, and fitness than ever before. Consequently, consumers are increasingly trying to lead more healthy and fit lifestyles, and a big part of the image associated with that lifestyle is wearing athletic-style clothes that are simultaneously comfortable and can be worn anywhere, all the time. The fix? Athleisure styles.Under Armour completely missed the boat on this athleisure trend and continues to miss it today. While brands like Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY), and Lululemon (NASDAQ:LULU) really focused on becoming lifestyle brands with a product assortment that applies to all consumers, Under Armour has consistently doubled down on performance. That was the wrong move.Consequently, while the other three players have consistently grown at a double-digit rate over the past few quarters, Under Armour's growth has fallen flat.Falling inventories won't solve that problem. Sure, now Under Armour can roll out new premium product and stop discounting stuff, which will help margins. But the company also needs to fix its image by becoming more of a lifestyle brand. As of today, it doesn't seem like there is anything in the growth pipeline which will do that.Further, even if Under Armour does pivot into lifestyle, they have a lot of catching up to do. Nike, Lululemon, and Adidas are firing on all cylinders right now, and all three are only gaining momentum. Under Armour will have a tough time gaining share against that backdrop. Valuation Risks Cap UpsideConsidering the competitive backdrop and Under Armour's recent inability to gain share in that competitive landscape, today's valuation on Under Armour stock seems stretched.Under Armour stock trades at nearly 60-times forward earnings. Everyone else in this industry trades roughly between 20- and 35-times forward earnings and everyone else is growing much more quickly. As such, relative to current growth rates, Under Armour's 60 forward multiple seems absurd.Sure, the bulls keep touting the long term profit growth potential. Yes, this company does sit at low single digit operating margins, versus mid-teens operating margins over at Nike. Thus, if the company does fix its inventory and discount problems, margins have lots of runway to move higher, and that will provide fuel for robust profit growth.But, if you model all that out, the valuation still seems stretched. Realistically, the global athletic apparel market will grow at a 4-6% annualized pace over the next several years. Best case scenario, Under Armour maintains share in that market.Thus, revenue growth runs around 5% per year. Operating margins move significantly higher to above 10% with inventories cleared and discounting in the rear-view mirror.Under all those aggressive assumptions, Under Armour can realistically do about $1.50 in earnings per share by fiscal 2025. Based on a Nike-average 25x forward multiple, that implies a reasonable fiscal 2024 price target for UAA of $37.50. Using a 10% discount rate, that equates to a fiscal 2019 price target of just over $23. Bottom Line on Under Armour StockUnder Armour's inventories are falling. That's good. It means the company does have runway to stabilize growth over the next several years, and push margins significantly higher. But, all that news is already priced into the stock, and the growth narrative is still riddled with competition risks. Thus, near term upside in UAA stock seems capped at $25 by competition and valuation risks.As of this writing, Luke Lango was long NKE and LULU. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Even a JP Morgan Endorsement Won't Help Under Armour Stock appeared first on InvestorPlace.
Trump is expected to impose 25% tariffs on another $300 billion worth of Chinese goods when he meets Chinese President Xi Jinping next month. The Footwear Distributors & Retailers of America (FDRA) estimates the hike in tariff would add $7 billion in additional costs for customers every year. The companies noted that the tariffs on footwear average 11.3% and reach rates as high as 67.5%.
More than 170 footwear companies signed a letter sent to President Trump urging him to not go ahead with extra tariffs on $300 billion of Chinese goods. The letter was signed by footwear industry heavyweights such as Nike, Adidas, Crocs, and Under Armour, among others.
Under Armour Stock Surged on May 17 after JPMorgan Chase Upgrade(Continued from Prior Part)Company’s revenue expectationsOn May 17, JPMorgan Chase upgraded its rating for Under Armour (UAA) stock to an “overweight” from a “neutral,”
President Donald Trump has proposed implementing 25 percent tariffs on $300 billion worth of imported goods from China, including clothing and footwear.
Under Armour Stock Surged on May 17 after JPMorgan Chase UpgradeStock up on bullish ratingUnder Armour (UAA) stock surged 7.8% on May 17 after JPMorgan Chase upgraded its rating for the footwear and athletic apparel maker to an “overweight” from
More than 170 shoe retailers, including Nike, Under Armour, Adidas, Foot Locker, Ugg and Off Broadway Shoe Warehouse, have penned a letter to the White House asking President Donald Trump to consider a halt to tariff increases on footwear imported from China.
The bulls did their best to make good on Thursday's flimsy turnaround effort, but it just wasn't meant to be. The S&P 500 lost 0.58% of its value on Friday, sliding back below a key technical line in the sand setting the stage for a bearish start to this week.Source: Allan Ajifo via Wikimedia (Modified)Tesla (NASDAQ:TSLA) did the most damage, falling 7.6% following news that its autopilot system was engaged during a fatal crash, on top of worries that a major cost-cutting initiative may be a sign of more trouble for the already-beleaguered company. Baidu (NASDAQ:BIDU) suffered the bigger loss though, tumbling 16.5% after the so-called Google of China booked its first quarterly loss in over a decade.There was a handful of winners, although only a handful. Under Armour (NYSE:UAA) gained 7.8% in response to a bullish note from JPMorgan touted the athletic apparel company's "controlled confidence" and the resulting potential for a 2020 turnaround.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Baby Boomer Stocks to Buy None are great prospects as Monday's session gets going, however. Rather, the stock charts of Clorox (NYSE:CLX), Expedia Group (NASDAQ:EXPE) and Davita (NYSE:DVA) are worth closer looks. Here's why. Davita (DVA)The rebound Davita was trying to stage last month didn't just falter. It broke, and then led into a high-conviction move to even lower lows. With Friday's loss in the bag though, DVA shares may have just broken past the point of salvaging without making a much lower low first.The good news is, there's a pretty good idea about where that bottom will be made and the next rebound effort takes shape. Click to Enlarge * The $49.50 level, plotted in red on the daily chart, was the last bastion of hope. That's where Davita stock hit a low in March, but failed to find a floor last week. * Notice all four key moving average lines are also now sloped downward, making it clear that the tide is bearish in all relevant timeframes. * If DVA is going to find support anywhere, in particular, it's most likely going to be around the support line that's tagged most of the key lows evident on the weekly chart, going back to 2016. It's currently around $46.50, but falling fast. Clorox (CLX)A month ago, Clorox shares looked like they would be in fine shape. Not only were they finding support at their 200-day moving average (highlighted) on the daily chart, they had just pushed up and off that line to start what appeared to be a breakout thrust.The sheer severity of the plunge suffered on the first day of May is a major red flag in and of itself. But, what's taken shape in the meantime makes bad news even worse. One more misstep could easily open the selling floodgates again. * 7 Stocks to Buy that Lost 10% Last Week Click to Enlarge * Following the early May tumble, a near-term trading range between $145.70 and $149.93 has taken shape, plotted with white dashed lines. This well-defined pause means the next move out of it could persist a while. * Underscoring the bearish tide is Friday's high volume behind the moderate selloff of CLX shares. * Although it has not happened yet, the purple 50-day moving average line is close to falling under the white 200-day line. If that so-called "death cross" takes shape, it could spark a wave of programmed selling. * Zooming out to the weekly chart we can see there's a long-term support level around $111, but more than that, we can see Clorox may not find a firm bottom until the RSI indicates gets much closer to 30. Expedia Group (EXPE)A month ago, Expedia Group shares appeared to be back on top. They were rallying out of March's lull, having pushed up and off a long-term support line that extends all the way back to 2015.That move was ultimately quelled by a bump into what has since clearly become a near-term resistance line. The early May high of $131.71 lines up with the past two major peaks. The subsequent slide, however, isn't like many of the prior ones that quickly stopped their bleeding. Click to Enlarge * The chief concern here is how much bearish volume has materialized just since the stock started to sell off in early May. We've not seen it quite that persistent yet. * Underscoring the budding bearish momentum is last week's death cross, where the purple 50-day moving average line has broken below the 200-day average. * Even so, there's a technical floor currently just above $110 that has to be appreciated. It's marked with a white dashed line on the weekly chart of EXPE.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post 3 Big Stock Charts for Monday: Davita, Clorox and Expedia Group appeared first on InvestorPlace.
Reston National Golf Course, the subject of a four-year legal battle over the potential for the site’s residential redevelopment, has been sold to a pair of developers who, at this time, say they don’t plan to change anything. Weller Development Co. and War Horse Cities, both of Baltimore, have closed on the 168-acre Sunrise Valley Drive property, Weller said in a statement. RN Golf LLC, a partnership of Northwestern Mutual Life Insurance and Billy Casper Golf, was the seller.
Wall Street ended lower on Friday as continuing trade tensions pulled industrial and tech shares down, and the Dow capped a fourth straight week of losses in its longest weekly losing streak in three years. The S&P 500 and the Nasdaq suffered their second successive weekly declines after U.S. stocks failed to fully recover from Monday's steep sell-off.
Despite pressure on the overall market, merger and acquisition activity and favorable analyst views lifted these stocks.
Nike rival Under Armour received an analyst upgrade Friday on the athletic gear maker's move to an offensive footing.
JPMorgan Chase & Co. analyst Matthew Boss upgraded Under Armour's stock to "overweight" on Friday after visiting with Plank and other executives earlier in the week at the sportswear maker's headquarters in Baltimore.
JPMorgan’s Matthew Boss wrapped up a series of meetings with top management by citing what he called “controlled confidence” in leadership.