|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||26.55 - 27.11|
|52 Week Range||16.52 - 27.11|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||21.75|
Learn about the three largest players in the U.S. athletic apparel industry by reviewing key financial data and their plans for the future.
The 10 largest local publicly traded companies have seen their stock price increase by an average of 31.5% through June 13.
Continued buyouts in the fitness space, transformation plan and other long-term efforts are likely to aid Under Armour (UAA) despite soft sales in North America and muted Q2 view.
"Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value […]
Under Armour Inc NYSE:UAView full report here! Summary * Bearish sentiment is moderate Bearish sentimentShort interest | PositiveShort interest is moderate for UA with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold UA had net inflows of $3.63 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. 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.
lululemon (LULU) witnesses robust sales and earnings momentum resulting from its digital and international growth strategies, which position it well for first-quarter fiscal 2019.
Columbia Sportswear (COLM) is set to gain on strong international presence, focus on Project CONNECT and solid DTC business.
Under Armour, Dunkin' Brands, and Costco Wholesale managed to hit fresh highs as the Dow finally moves higher after six weeks of declines.
Guess? (GES) Q1 loss widens year on year, while the top line registers growth, backed by strength in the Americas and Europe.
[Editor's note: This story was previously published in February 2019. 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 Tips * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% The 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.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 150% rally in PANW stock over the past five years.Recent numbers are a little weak, but analysts remain confident on the stock. 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.Source: Dennis van Zuijlekom via FlickrThis 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 211%.Revenue growth isn't slowing at all, 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 Stocks to Buy That Could Be Takeover Targets Analysts are worried about valuation here and now, with the stock trading at nearly 40X 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. 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.Source: Check Point SoftwareBut, CHKP stock has struggled lately. CHKP stock is up just 14% 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 a little more than 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, 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. FireEye (FEYE)I'd lump cybersecurity company FireEye (NASDAQ:FEYE) more into the Check Point pile than the Palo Alto Networks and Fortinet pile.Source: David via Flickr (Modified)This is a solid company with healthy industry drivers, but revenue growth isn't robust. Over the last few years, that's caught up with the stock which has fallen 60 percent over the last five years. The company is barely profitable.As such, FEYE stock doesn't look like a huge winner in the big picture. * 6 Big Dividend Stocks to Buy as Yields Plunge 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. \Because of this massive growth in a rapidly expanding industry, PFPT stock has done quite well. The stock is up 200% 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. 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. * 7 Bank Stocks to Leave in the Vault 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. CyberArk (CYBR)Much like Proofpoint, CyberArk (NASDAQ:CYBR) is a cybersecurity company characterized by small scale but big growth.Source: Shutterstock CyberArk is even smaller than Proofpoint (just a $2 billion market cap). But, growth is really big. Last quarter, revenues rose 34% year-over-year, and deferred revenue rose by more than 40%.Also much like PFPT, CYBR stock has been a big winner due to its big growth. Over the past year, CYBR stock is up 103%.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. 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.Source: Shutterstock That part of the Cisco narrative is doing well, and is powering improved financial results. After its 30 climb this year, Cisco may be starting to level off. 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. * 7 Stocks to Buy for Monster Growth That being said, CSCO stock is pretty cheap at just 16X forward earnings, and the chart looks pretty good.Big picture, CSCO stock has 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. 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.Source: Shutterstock 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 haven't been great as of late. Revenues were down year-over-year for the last quarter, but 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. The stock is down more than 70% over the past year, but it has a bunch of positive momentum right now. Qualys (QLYS)The next cybersecurity stock to watch over the next several years is Qualys (NASDAQ:QLYS).Source: Shutterstock 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 15%. Gross margins aren't soaring higher, but operating margins are moving higher as big revenue growth is driving opex leverage. * 7 Safe Stocks to Buy for Anxious Investors 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. Symantec (SYMC)Of all the stocks on this list, Symantec (NASDAQ:SYMC) is the one that has been struggling the most.Source: Shutterstock SYMC stock is down more than 16% 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. Akamai (AKAM)One cybersecurity stock with a very attractive and multi-faceted growth narrative is Akamai (NASDAQ:AKAM).Source: Shutterstock 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. * 7 High-Yield REITs to Buy (Even When the Market Tanks) 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. Splunk (SPLK)Another high-growth name in this space is Splunk (NASDAQ:SPLK).Source: Web Summit Via FlickrSplunk 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, and likely at the heart of its 17% drop in May. 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. F5 Networks (FFIV)F5 Networks (NASDAQ:FFIV) has fallen upon hard times. But, that could change soon.Source: Shutterstock Over the past year, the stock is down 22% and the forward-earnings-multiple on FFIV stock remains below 20.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. Cybersecurity tailwinds are strong, but there are better cybersecurity stocks on this list with more upside potential. Zscaler (ZS)Freshly public and relatively small, Zscaler (NASDAQ:ZS) is one of the most exciting and risky cybersecurity stocks on this list.Source: Shutterstock Zscaler went public at $16-per-share in March 2018. 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 $70.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.
Lululemon (NASDAQ:LULU) reports earnings on Wednesday, June 12. LULU stock has developed a reputation for significant movements following earnings reports. Hence, the Vancouver-based apparel maker will probably face high expectations going into the report. Still, while I see LULU as a long-term winner, the report may not bring the positive catalyst that many expect.Source: Shutterstock Wall Street forecasts the company will earn 71 cents per share in its first quarter. If this holds, that will represent a 27% increase from the same quarter last year when LULU reported 55 cents per share in profit. Analysts also predict revenues of $757 million for the quarter. This would be a 16.2% increase from year-ago levels of $649.71 million.Given its earnings history, holders of LULU stock may expect a little more. LULU has beat earnings for the last eight quarters and sales forecasts in the previous 13 reports. Moreover, Wall Street predicts earnings growth of 20.6% for the current year and 17.9% the next.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso, for the last five quarters, the LULU stock price has moved by more than 10% (in one direction or the other) following the report. All of these factors should bring high expectations. * 10 Stocks to Buy That Could Be Takeover Targets The company's signature yoga pants have put the company on the map. However, it has quickly emerged as a full-fledged athletic brand. They will expand into athletic shoes as well as personal care products. Lululemon even has added a line of menswear. They have also begun to test a loyalty program that will compare to Amazon's (NASDAQ:AMZN) Prime membership. Report May Not Bolster LULU StockSince their specialty remains women's yoga pants, it remains unclear how successful these other lines will become. While the sale of menswear should increase sales, it remains unclear how much of a following a maker of women's yoga pants will attract in this market. However, this places the company in more direct competition with Nike (NYSE:NKE), Under Armour (NYSE:UA, NYSE:UAA) and Adidas (OTCMKTS:ADDYY).One other factor will heighten expectations further. In the previous quarter, Lululemon stock spiked higher by over 14% the day after its March earnings report. Many traders will inevitably buy LULU in hopes of a repeat performance. While that could happen, I would caution against buying for that reason. Following the December report, LULU stock fell by more than 13% despite an earnings beat.Moreover, LULU trades at a price-to-earnings (P/E) ratio of around 47.3. It also trades close to 31.2 times earnings on a forward basis. Given the expected profit growth rate and the likelihood of beating estimates, I do not see LULU as significantly overvalued. However, I believe the market has priced in the positives of this stock.I stated in a recent article that LULU stock would probably follow overall market trends. Since I reported that on April 10, LULU has fallen by slightly more than 1%. In comparison, the S&P 500 has fallen by a little more than 2% as of the time of this writing. Hence, that has largely held so far. Furthermore, trends do not appear favorable with the overall economy facing trade wars and slowing growth. While earnings could inspire a significant move in the stock, I believe it will continue to follow overall market trends closely. * 7 Reasons Stock Buybacks Should Be Illegal Final Thoughts on LULU StockGiven the history of LULU stock, the earnings report should spark a reaction, though not necessarily a positive one. Lululemon stock consistently beats estimates. The company has also gone into business lines that should place them into deeper competition with firms such as Nike. However, beating earnings estimates has not necessarily taken the stock higher. Further, investors should not assume that the success LULU enjoyed with women's yoga pants will carry over into other clothing or product lines.Finally, as for its current valuation, it will probably follow the market in the near term. Although Lululemon will probably continue its long-term growth, I would still encourage patience with LULU stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post Is Lululemon Stock Too Risky to Bet On Before Earnings? appeared first on InvestorPlace.
If you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider Under Armour (UAA).
Shares of Nike (NYSE:NKE) have been under plenty of pressure over the past few weeks. Intensifying trade talks with China aren't helping, as Nike stock hits its lowest levels since January. Not all sports stocks are created equal though, as Under Armour (NYSE:UA, NYSE:UAA) continues to do just fine. Lululemon Athletica (NASDAQ:LULU) is doing okay, but not great, while Foot Locker (NYSE:FL) is tanking.Source: rodrigofranca via FlickrThis year's NBA Finals are interesting, given how many NBA pros have top shoe deals. Over the past few years, we've seen the Golden State Warriors face off with the Cleveland Cavaliers. That featured a number of Nike athletes, including Kevin Durant (the last two years), LeBron James and Kyrie Irving, among others. Under Armour, notably, had Stephen Curry on its side.But this year matchup between Golden State and the Toronto Raptors features Durant with Nike, Curry with Under Armour and Kawhi Leonard with New Balance. It's a diversified bunch, although it doesn't help Nike that its star (Durant) has been injured for the first two games.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Sports Stocks to WatchWith game three of the NBA Finals coming up on Wednesday, I want to see if Nike stock specifically can shake its recent stigma. Not many were expecting the Raptors to put up a big fight against Golden State. But through two games, the series is pretty tight so far.That's important, because the longer this series goes, the more exposure Nike can get. In June 2015, Nike signed an eight-year apparel deal with the NBA. Further, the apparel maker just dropped a re-release of its Air Jordan 4 shoe, in its Raptor colorway. The company is doing exactly what it should do to keep attention flowing to its brand. * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right The question is, will it work?Based on the last few earnings reports, Nike is doing well. But trade-war worries continue to weigh on the stock. If we can get some more-than-expected Nike-specific focus during the Finals, that may help with short-term sentiment. That's assuming the stock market can find its footing -- no pun intended -- and slow its recent selloff.However, sports stocks and Nike stock specifically will likely come under pressure should trade-war talk intensify. A global slowdown doesn't do Nike any good, nor does a worsening trade war.So while investors will have one eye on the NBA Finals, they'll also be watching trade-war headlines to see how they impact sports stocks going forward. Trading Nike Stock Click to EnlargeBasketball is a huge driver for Nike and the league doesn't get any more attention than when it's playoffs time. So far though, that's not translating to a higher stock price. Nike stock is down 14% from its highs in mid-April.Shares were able to rally about 1% on Monday in the face of another broad-market decline. Perhaps it's a sign that the NBA Finals can give it a boost. It's also bouncing off that $77 area, a key fourth-quarter resistance level that, once breached, propelled NKE stock higher in January.It would be discouraging to see Nike lose this mark now. If it does, watch $75, the 61.8% retracement for the one-year range to give it another bounce. Below there and I wonder if investors can get lucky enough to nab a position in NKE for $70-ish. That would be a great long-term opportunity. * 7 Retail Stocks Winning in 2019 and Beyond On the upside, say current levels hold. We first need to see Nike stock recapture the 50% retracement at $78. From there, a rally back to the $80 to $81 area can ensue. Particularly if trade headlines relent for a few sessions and investors can focus on Nike's fundamentals and the Finals.However, $80 to $81 is a big level. There it has the 200-day moving average, channel resistance, the 38.2% retracement and the downtrending 20-day moving average.That's a mouthful of numbers, but for simplicity sake, just know it could easily act as resistance. At least on Nike stock's first test. Should it push through though, it could give shares -- and sports stocks in general -- a serious spark.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell 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 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Will NBA Finals Give Sports Stocks Like Nike a Bounce? appeared first on InvestorPlace.
We take a look at why Deckers Outdoor Corporation (DECK), Columbia Sportswear (COLM), and Under Armour (UAA) are all Zacks Rank 2 (Buy) stocks right now.
The result was so unexpected the fight is actually getting more coverage after the fact than it did it before taking place, analysts note.
Under Armour (UAA) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
As an investor its worth striving to ensure your overall portfolio beats the market average. But its virtually certain...
You don't have to be an athlete to recognize that Nike (NYSE:NKE) is one of America's top brands. Ordinarily, such a lofty distinction will put you in a great position in the markets. Unfortunately, two critical headwinds threaten to derail the party. NKE stock closed down almost 3% yesterday.Source: Kristian Olsen Via UnsplashFirst, we have competitive jitters clouding the overall athletic-apparel industry. Segment retailer Foot Locker (NYSE:FL), which up until mid-April had a solid showing in 2019 absorbed a nasty tumble. After releasing results for the first quarter that missed both earnings and revenue expectations, FL stock tanked 16%.Of course, Foot Locker is highly dependent on Nike, with the iconic shoemaker accounting for roughly two-thirds of sales. In turn, Nike is shifting toward online sales and direct retail channels, which obviously hurts FL stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the broader takeaway is that the American consumer is cutting back on discretionary spending. After all, Foot Locker had a strong showing for Q4, including much better-than-expected same-store sales. Therefore, the curbing of spending habits will invariably hit NKE stock.But the bigger headwind impacting Nike stock and the entire athletic-apparel segment is the bitter U.S.-China trade war. Nike's management team, along with their rival counterpart Under Armour (NYSE:UA, NYSE:UAA) and other shoe retailers, urged President Trump to back down. * 7 Utility Stocks to Trust for Retirement The reason of course is obvious. If you have a slowdown in sales at home, China's emergent economy and billion-plus consumer base represents an easy solution. But with Trump's fierce rhetoric causing an equally outraged response, the Chinese are in no mood to play ball.Although I like NKE stock based on its fiscal stability and segment domination, geopolitics must be respected. Protracted Trade Dispute Threatens Nike StockHere's the thing: if the world's top two economies can settle their differences now, we're back to the natural order. Nike stock jumps on powerful Chinese demand, and a stabilizing North American base.But what's the likelihood of that scenario? Given recent political and international headlines, I believe the current signs bode poorly for NKE stock.Over the past weekend, Japanese Prime Minister Shinzo Abe played the charm offensive toward President Trump. The reason? To get Trump to listen to reason regarding the White House's "shotgun" tariffs. Specifically, the President threatens to penalize both Japan and the European Union unless they renegotiate supposedly unfavorable trade deals.Japanese auto giant Toyota (NYSE:TM) responded incredulously, citing their massive investments toward American infrastructures and jobs. In my opinion, they're right to be outraged. A true capitalist businessman would understand that competition breeds superior offerings for consumers.Besides, Detroit has had at least four decades to improve their craft. It's not Toyota's fault that they stink.But the bigger takeaway as it relates to NKE stock is Trump's mentality. Apparently, he has zero qualms about hurting regions that are net accretive to U.S. economic interests. How much more will he aggressively attack China, which is very much our ideological adversary?Admittedly, it's not all bad news for Nike stock. The underlying company is gaining ground in China. Moreover, management views the Asian juggernaut as a largely untapped opportunity. Plus, the average Chinese consumer loves American brands.However, that demand faces threats because Nike doesn't have a monopoly in athletic fashion. Principal rival Adidas (OTCMKTS:ADDYY) has also gained significant momentum with Chinese millennials, particularly with its Yeezy brand. * 5 Safe Stocks to Buy This Summer Clearly, this reignited conflict is coming at the worst possible time for Nike stock. Technical Posture for NKE Stock also a Bad OmenI realize that even among InvestorPlace contributors, a debate rages between the technical and fundamental approaches. Granted, some of the assertions from technical analysts are a bit on the wonky side.But I also think real value exists when both the fundamentals and technicals confirm the same narrative. Fundamentally, the U.S. consumer market has notably weakened, sending FL stock into the dumpster. However, hybrid producer/retailers like NKE don't have a Chinese emergency valve anymore. That obviously hurts the case for Nike stock.And its technical chart gives you all the information you need to know. After hitting a peak this year in the second half of April, Nike stock is conspicuously pensive. It's roughly the same situation for American athletic-apparel makers.But the obvious winner in this mix is the decidedly not American Adidas. ADDYY shares have soared 38% year-to-date. Arguably, Adidas has better reach with Chinese consumers. On the other hand, Nike is losing its grip with both American and Chinese customers. Combined, these are good reasons to stay cautious on NKE stock.As of this writing, Josh Enomoto 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 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post Foot Locker Hurts But The Trade War Debate Could Tank Nike Stock appeared first on InvestorPlace.
Steph Curry and Under Armour released their first Curry-branded shoes midway through the 2014-15 season, and this is the 10th colorway of the Curry 6.
This time it's different. We've all heard this phrase before, often in a condescending context. Typically, market forecasters who got something wrong earlier will use it to double down on their initial prognostication. But when it comes to picking which stocks to sell amid the re-escalated U.S.-China trade war, this situation has no parallel.Obviously, the biggest wildcard in this economic conflict is U.S. President Donald Trump. Right when circumstances appeared favorable for a trade resolution, the former real-estate mogul had other ideas. In a social media post, he blasted the Chinese for dragging their feet toward the negotiating table. Naturally, the about-face angered China, scuttling scheduled talks and by logical extension, boosting the bearish case for stocks to sell.But the other critical factor in this dispute is the Chinese response. They no longer appear amused to play the typical diplomatic courtesies. Their rhetoric has taken on a much more nationalistic sentiment. For example, China's officials referenced deep historical overtones to slight the U.S.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for June Plus, Trump's counterpart, Chinese President Xi Jinping, used the term "long march" regarding the trade war. That's referring to China's civil war and the ultimate rise of the communist party. Although I'm sure nuances exist, that aggressive tone highlights the importance of recognizing which stocks to sell.Finally, I wouldn't get complacent about this trade war. Although agriculture and technology represent the front-facing victims, everyone suffers when the top two economies collide. With that, here are seven stocks to sell amid the second round of the trade war: Stocks to Sell: Apple (AAPL)Source: Shutterstock This might seem like an easy one, plucking the lowest of low-hanging fruit. With Apple (NASDAQ:AAPL) seeking new avenues to diversify its business, China offered a viable safety valve. But with heightened tensions, AAPL stock has noticeably suffered. Since the first of May, shares have dropped nearly 15%.That volatility might cue contrarians to enter the markets. But if you're among them, I'd continue to hold off. Sure, AAPL stock remains a robust investment. It wasn't too long ago that the underlying consumer-tech firm became the world's first trillion-dollar company. However, its search for revenue diversification just took a huge hit with re-intensified tensions.Like other portable-device manufacturers, Apple must contend with "peak smartphone." To get around this growing problem, AAPL sought to build out its Services division. But legal challenges now cloud that business.Therefore, you should play the safe game here and put AAPL on your list of stocks to sell. Under Armour (UA, UAA)Source: Shutterstock For quite some time, I've urged readers to put Under Armour (NYSE:UA, NYSE:UAA) in their basket of stocks to sell. One of the reasons I didn't believe in Under Armour stock is the irrational market toward sports sponsorships. The bottom line here is that the broader athletic machinery is paying ridiculous sums of money to adults to play a kid's game.Still, that's the nature of the beast: if you want to play, you have to pay. However, UA stock, when stacked up against sector leaders Nike (NYSE:NKE) and Adidas (OTCMKTS:ADDYY) fares poorly on a financial scale. To win against these titans, Under Armour must hope for a lucky break. * 7 Utility Stocks to Trust for Retirement Oh, there's breaking going on, but not the good kind. We all know from Foot Locker's (NYSE:FL) dreadful miss in their first-quarter earnings report that the U.S. consumer is hurting. To make ground, Under Armour needs a robust Chinese market. Here, geopolitical tensions threaten to derail everything for UAA stock. Walmart (WMT)Source: Shutterstock Now we're going to talk about one of the stocks to sell that hurts me. I like retail giant Walmart (NYSE:WMT). Actually, let me clarify: I don't like shopping there, but I recognize their investment strength. WMT stock represents a brick-and-mortar retail powerhouse that has proven immune to e-commerce disruption. It also pays a dividend, which usually protects shares from volatility.But let's face facts here. Favorable financial metrics supported Walmart during the first round of the trade war. But that situation was only a temporary reprieve. Last September, Walmart's management team urged the Trump administration to ease diplomatic tensions. At some point, tariffs will force retailers to take drastic measures, including consumer-price hikes.That's hugely problematic because of Walmart's shoppers. These are consumers that cannot absorb a price hike, which is why I'm cautious on WMT stock now. General Motors (GM)Source: Shutterstock Amid these escalating tensions, General Motors (NYSE:GM) has two reasons why its equity belongs on a list of stocks to sell. Number one, American cars are junk. Number two, the marketing machinery to sell American cars is equally disappointing. Detroit loves to pander to patriotism and subtle anti-Japanese sentiment to generate sales.You know what's more patriotic? Taking pride in your work and rising up to meet a challenge.Anyways, GM stock does have an ace up its sleeve -- or should I say, did. In America, GM brands like Buick have all but died in terms of relevancy. But in China, that's different. Due to longstanding historical and cultural reasons, the Chinese love American cars.That will likely change, though, with this heated conflict. You see, GM stock is levered two ways with China: General Motors sell to the Chinese, and they also contract the Chinese to sell GM-branded cars to us. That's why management was so desperate to seek an exemption from the Trump administration last year. * 5 Safe Stocks to Buy This Summer But with how things are going geopolitically, you can kiss GM stock goodbye. Tiffany (TIF)Source: Shutterstock Earlier this year, Tiffany (NYSE:TIF) seemed like a sound investment among the rather shaky discretionary-spending segment. Although the company's overall revenue went flat for the holidays, it did have a bright spot: sales growth in mainland China, which jumped by double digits in the last two months of 2018. It's a formula that many distinguished organizations have failed to master, separating TIF stock from the competition.But now, the trade war urges stakeholders to toss it into their portfolio of stocks to sell. The pivotal reason is that Beijing is determined to play the long game against Washington. This is the reason why the Chinese government's aforementioned aggressive rhetoric is so worrying: they mean it.Unlike the U.S. and most western countries, China is largely racially and ethnically homogenous. When most of its citizens are Han Chinese, you have fewer opportunities for internal strife. Therefore, it's easier for Beijing to appeal to nationalistic sentiment. Demographically, everyone is on the same page.And let's be real: boycotting frivolities like jewelry is easy. Thus, I'd steer clear of TIF stock for now. Alibaba (BABA)Source: Shutterstock I've mostly focused on American companies for my list of stocks to sell. But that doesn't mean I'm letting Chinese stocks off the hook. The knife cuts both ways. As such, most publicly traded Chinese firms are suspect. However, I'll sum up my reservations for the region by addressing Alibaba (NYSE:BABA), China's flagship corporate entity.China is a country built on intellectual theft. China's scientific infrastructure is based on possibly record-breaking fraud and intellectual theft. According to Business Insider, "a mind-blowing number of counterfeit goods come from China." Even their art industry is buoyed by a shocking level of corruption!So is it any surprise that for years, analysts questioned BABA stock? * 6 Stocks to Buy for This Decade's Massive Megatrend While I'm concerned about the coming pain stateside, the Chinese better watch out for their own good. Angering Trump only makes him want to double, triple, heck even quadruple down on his initial policy. Eventually, BABA stock can take a long march out of the markets if the Chinese overplay their hand. NIO (NIO)Source: Shutterstock Please forgive me for my thoughts on GM if you drive or love American cars. I'm just telling it like it is. But if you still have some bitter lingering emotions, allow me to soothe them with my take on NIO (NYSE:NIO). Among automotive stocks to sell, this one takes the cake.NIO stock faces so many problems it's difficult to know where to start. Primarily, I'd say that it's incredibly difficult to break into the automotive market. For example, it took Toyota (NYSE:TM) decades of long-term strategizing to break into and later dominate the U.S. market.That segues into my second point, which is that NIO has zero chance of breaking into the U.S. market with this trade war. Seriously, Japanese automakers have invested billions into American jobs and infrastructures, yet Trump still cries foul. If that's the stance the administration takes on allies, imagine being an adversary?Finally, NIO has a credibility problem. Chinese manufacturing has a poor reputation that really hasn't improved much today. If Tesla (NASDAQ:TSLA) can't build a car that's consistently reliable, can Nio do better?I thought not, which is why I'm steering clear of NIO stock despite its discount.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post 7 Stocks to Sell Amid an Escalating Trade War appeared first on InvestorPlace.
The latest comments by Dick's CEO Ed Stack show the partnership between Under Armour and its biggest wholesale customer is on the upswing.
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Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down FL's Q1 financial results and dives into why LULU looks like a buy heading into Q1 earnings.