24.14 -0.13 (-0.54%)
Pre-Market: 8:15AM EDT
|Bid||23.80 x 3100|
|Ask||24.22 x 4000|
|Day's Range||23.58 - 24.31|
|52 Week Range||16.52 - 24.96|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||1,733.57|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.08|
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.
Under Armour news about an upgrade for the company has UAA stock up on Friday.Source: Shutterstock The upgrade for Under Armour (NYSE:UAA) comes from analysts at JPMorgan. These analysts are taking the stock from its previous rating of "Neutral" and increasing it to a new rating of "Overweight."The good Under Armour news doesn't just stop at a stock upgrade. The JPMorgan analysts are also increasing the price target for UAA stock. This new price target is $29 per share. That's a roughly 26% increase over the old price target of $23. It also is about 33% above the stock's closing price of $21.88 on Thursday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what is it that has JPMorgan analysts' taking such a bullish stance on UAA stock? The analysts decided to give the stock the new rating and price target after meeting with Under Armour CEO Kevin Plank.According to TheStreet.com, the analysts came away from that meeting with more confidence in the company. The firm also points to the company's revenue growth acceleration and earnings for fiscal 2020 as one of the reasons for the upgrade. This is all positive Under Armour news for investors. * 6 Chinese Stocks That Could Pop On a Trade Deal Under Armour has been working to turn its business around and reduce debt. It looks like those efforts are paying off with this new upgrade and price target from JPMorgan. This is a major change over where the stock was sitting three years ago and maybe signs that it's back to being a solid investment.UAA stock was up 7% as of noon Friday. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Under Armour News: Why UAA Stock Is Climbing Today appeared first on InvestorPlace.
shares jumped Friday after analysts at JPMorgan upgraded the stock to overweight from neutral and raised their price target to $29 per share from $23. The upgrade comes after analysts met with CEO Kevin Plank and came away from the meeting with the impression that the company's management had a tone of "controlled confidence." The firm also lauded the company's "disciplined" fiscal 2020 earnings and revenue growth acceleration.
U.S. stocks slipped on Friday, after three straight sessions of gains, as trade tensions were renewed after Chinese media took a hardline approach to the tariff dispute between the United States and China. The trade war will only make China stronger and will never bring the country to its knees, the ruling Communist Party's People's Daily wrote in a front-page commentary. The two sides are expected to meet in China to resume talks soon.
Shares of Under Armour Inc. jumped 3.5% in premarket trade Friday, after J.P. Morgan turned bullish on the athletic gear maker for the first time in at least three years, following an upbeat meeting with management. Analyst Matthew Boss raised his rating to overweight from neutral, and his stock price target to $29, which is 33% above Thursday's closing price of $21.88, from $23. Boss said the tone from the meeting was "controlled confidence" in the brand's direction, with earnings and revenue growth acceleration driven by the combination of the company's product, innovation and marketing strategy. That follows the company's "shrink phase" aimed at product rationalization, inventory reduction and vendor base consolidation. Boss said Under Armour is now positioned for "multi-year gross margin expansion." The stock has rallied 23.8% year to date through Thursday, while the SPDR Consumer Discretionary Select Sector ETF has climbed 18% and the S&P 500 has advanced 15%.
Check out the companies making headlines before the bell: Deere DE — The heavy equipment maker reported quarterly profit of $3.52 per share , 10 cents a share below estimates. Revenue exceeded analysts' expectations.
U.S. stock index futures dipped on Friday, following three consecutive sessions of gains, as trade worries returned after a Chinese newspaper took a hard stance on the tariff dispute between the United ...
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.