|Bid||82.21 x 1300|
|Ask||82.33 x 1000|
|Day's Range||82.15 - 85.90|
|52 Week Range||63.21 - 88.59|
|Beta (3Y Monthly)||0.85|
|PE Ratio (TTM)||32.02|
|Earnings Date||Mar 20, 2019 - Mar 25, 2019|
|Forward Dividend & Yield||0.88 (1.00%)|
|1y Target Est||89.85|
The Dow Jones Industrial Average closed down sharply Friday as weaker-than-expected manufacturing data in the U.S. and Europe renewed fears of slowing global growth. tumbled 6.6% after the sports apparel company posted weaker-than-expected third quarter sales in its key North American market. shares rose 3.2% despite the luxury jewelry retailer missing Wall Street's fourth-quarter sales expectations.
Shares of Under Armour (NYSE:UAA) have been range-bound between $15 and $25 for the past twelve months, as good and bad catalysts have largely offset one another. Bulls are hoping this range-bound trading will end in 2019, and that UAA stock will break out towards $30 as revenue growth and margin expansion come together to power robust profit growth.Source: Shutterstock The reality is that robust profit growth will happen in 2019, but it won't spark a breakout rally in UAA stock.Why? Valuation. This is a classic case of a fully valued stock treading water until the fundamentals catch up to the valuation. In late 2017 and early 2018, investors bid up UAA stock in anticipation of a big turnaround as revenue growth and margins started to stabilize. But they bid the stock up to levels that were fundamentally stretched. As such, ever since that big rally, UAA stock has been stuck in a sideways trading range as the fundamentals have tried to catch up.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBecause the Under Armour turnaround is progressing at a snail's pace, those fundamentals won't fully catch up until 2020 or 2021. As such, investors shouldn't expect UAA stock to break out of its $15-to-$25 trading range in 2019. That won't happen for another twelve months. The Fundamentals Aren't Great for UAA StockIn the big picture, the athletic apparel space is expanding thanks to secular trends, such as the convergence of athletic and casual styles, and a global consumer pivot towards being healthier and more active. But, in that space, Under Armour is losing relevance, share and popularity because they've failed to capitalize on these trends. * 10 Stocks on the Rise Heading Into the Second Quarter Namely, as Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY) and Lululemon (NASDAQ:LULU) have turned into lifestyle brands that sell clothes which people wear to work out and hang out, Under Armour hasn't. Instead, Under Armour has doubled down on performance, and entirely missed the boat on the lifestyle pivot.As such, Under Armour has mitigated exposure to the lifestyle growth niche within the athletic apparel category, which is where most of the growth is today. That's why Nike, Lululemon and Adidas are all growing at high single digit-plus growth rates, while Under Armour is struggling to maintain narrowly positive revenue growth.These struggles will continue. It will be tough for Under Armour to pivot into lifestyle. Nike, Adidas, and Lululemon collectively dominate the lion's share of this market. Plus, upstart brands like Gymshark are also gaining share.In other words, the lifestyle side of this market is very crowded. There really isn't room for Under Armour.To be sure, that doesn't mean the Under Armour brand is dead. There's still growth potential on the performance side of the athletic apparel market, especially in the footwear segment. Under Armour will be able to grow in those verticals. But, growth will be greatly limited because of its lack exposure to the lifestyle side of the market.As such, the turnaround fundamentals underlying UAA stock aren't all that great. Valuation Is Still StretchedBecause Under Armour's turnaround fundamentals aren't all that great, the Under Armour turnaround has progressed at a snail's pace.In 2016, Under Armour's revenue growth rate was 23%. In 2017, it dropped sharply to 3%. Then, in 2018, it rebounded only marginally to 4%. Meanwhile, North America revenue growth rate dropped from 16% in 2016, to -5% in 2017, and rebounded only slightly to -2% in 2018. Gross margins dropped more than 100 basis points in 2017, and rebounded only 30 basis points in 2018.In other words, the trend here is very clear. Under Armour's growth trends fell off a cliff in 2017 and rebounded very slowly in 2018.This snail's pace rebound is expected to continue next year. Revenue growth is projected to be roughly 3%-4%. North America revenue growth is expected to be flat. Gross margins are expected to rise 70 basis points.All in all, because of Under Armour's lack of exposure to the high-growth lifestyle segment of the athletic apparel market, the UAA turnaround is progressing slowly. At 63-times forward earnings, UAA stock needs more than a slow turnaround to breakout of its sideways trading range.Here are the numbers. Going forward, Under Armour is likely a mid-single-digit revenue grower with room for gross margin expansion to ~48% and opex leverage to ~11%. If that happens, Under Armour could reasonably hit $1.50 in EPS by fiscal 2025. Based on a Nike-average 25 forward multiple, that implies a reasonable fiscal 2024 price target for UAA stock of $37.50. Using a 10% discount rate, that means prices above $25 aren't fundamentally supported until fiscal 2020. Bottom Line on UAA StockUnder Armour isn't a bad company, it's just one that failed to pivot into an area it needed to pivot into in order to keep shares on an uptrend. As such, UAA stock has been stuck in neutral over the past several quarters as slowly improving fundamentals have tried to catch up to a stretched valuation.This dynamic will persist for the foreseeable future. Indeed, fundamentals say that UAA stock won't break out of its $15 to $25 trading range until 2020.As of this writing, Luke Lango was long NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Don't Expect a Big Rally From Under Armour Stock Anytime Soon appeared first on InvestorPlace.
Nike’s caution about the fiscal fourth quarter isn’t shared with analysts, but shares are down in Friday trading.
Attorneys for Nike on Friday argued during a court hearing that a lawsuit against the company's board of directors should be dismissed because it lacks sufficient facts. The lawsuit was the second sweeping lawsuit filed against the sportswear giant in the wake of claims about a toxic workplace. Plaintiffs argued the lawsuit has enough facts to survive Nike's motion to dismiss. A ruling is expected within three weeks.
Nike Inc. (NKE) reported fiscal third-quarter 2019 results after the market closed on March 21. Softer growth in North America, however, disappointed investors. Warning! GuruFocus has detected 5 Warning Signs with FLGT.
Stocks that moved substantially or traded heavily on Friday: Nike Inc., down $5.82 to $82.19 The athletic apparel maker reported weaker-than-expected sales in North America and warned of a sales slowdown. ...
In addition to Shaquille O'Neal telling TheStreet his investment tips, Friday was a pretty interesting day. Nike, RealMoney's stock of the day, was "indicated -4.5% after hours (Thursday) against high buy-side expectations," wrote analysts at Morgan Stanley early Friday morning, implying what Nike would do at Friday's market open. The analyst's buy-side point shows that investors and sell-side analysts can often have divergent opinions on near-term stock movements.
While there was no glaring hole in the company's results, in fact the company recorded a beat on top and bottom-line earnings results, the market appears to have pinpointed pain points of weakness. The anxiety over a slowdown, a much feared buzzword in the current environment, was only exacerbated by North American sales coming in well below analyst estimates. Amid the slide, the analyst community consistently advised picking up shares at what they saw as significantly discounted values.
Analysts are playing defense for Nike, citing the company's innovation in its product pipeline, supply chain and digital technology.
A day after a big rally, stocks were under significant pressure on Friday. This is as Treasury yields threaten to invert and drag banks lower. It also ignites recession fears among investors. Let's look at a few top stock trades to watching going into next week. Top Stock Trades for Tomorrow 1: Bank of AmericaBank stocks are under extreme pressure on Friday. Looking at Bank of America (NYSE:BAC), shares were down 5% at one point during the day. Now off less than 4%, bulls are stepping up to the plate a bit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, this one was breaking out to the upside just the other day. Now we're seeing range support give way. $28 was the floor in this name and now just a few pennies above $27, support has officially gave way.Unless you're a long-term investor, I would avoid BAC stock. At the very least, I'd give it a few days to see how it shakes out. I want to see if $28 will act as resistance or if BAC will fill the gap down to $26.50. It almost filled that gap on Friday, but didn't quite get there.If the gap doesn't hold as support, look for the backside of prior downtrend support to buoy BAC. Top Stock Trades for Tomorrow 2: TiffanyTiffany & Co (NYSE:TIF) shares were jumping on Friday, climbing 3% on a tough day in the markets thanks to better-than-expected earnings. Is it rallying right into resistance though?The stock has been trending higher in a channel for several months and is now breaking out. But the $105 level could be tough to penetrate. For starters, this level was support turned resistance last fall, while potential downtrend resistance is near the area as well. Finally, the 50% retracement for the 52-week range sits just under $106.That said, if TIF can push through this mark, it could trigger a large breakout. If so, see how it handles the 200-day. On a pullback, see if the prior channel resistance holds as support. Top Stock Trades for Tomorrow 3: Papa John'sPapa John's (NASDAQ:PZZA) has added Shaquille O'Neal to its board and as a brand ambassador. This sent the stock higher by almost 6% on Friday. The move propelled PZZA over the 50-week moving average, while the momentum-measuring MACD (green circle) turns more in the bulls' favor.If momentum keeps up, see if PZZA can climb to $55. On a pullback, I want to see the 50-week and 10-week moving averages hold as support. Top Stock Trades for Tomorrow 4: Canopy GrowthOne could make the argument that Canopy Growth (NYSE:CGC) is still consolidating tightly between support and resistance. Loosely speaking, it is. But with Friday's decline below the 20-day and 50-day moving averages and CGC is losing steam.This group -- and this name specifically -- can be volatile. So I'm not saying that it won't snap back on Monday and even breakout higher at some point next week. But at this rate, the name is simply lacking any follow through, meeting sellers each time it nears $48.Even though we've been watching this one for weeks, it may be time for bullish traders to move on after Friday's fall. The close below the 50-day is certainly a negative. Top Stock Trades for Tomorrow 5: NikeDespite beating on earnings and revenue estimates, Nike (NYSE:NKE) stock is falling almost 6% on Friday as guidance disappoints.If the stock doesn't reclaim the 50-day early next week, Nike may have lower to go. If it does reclaim this mark, look for $83 and the 50-day to support the stock. Otherwise, let's see if we can't nab NKE stock on a decline down to the 200-day. That would be a great dip-buying opportunity.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.Compare Brokers The post 5 Top Stock Trades for Monday: CGC, TIF, NKE, PZZA appeared first on InvestorPlace.
Nike Inc (NYSE: NKE) shares were falling Friday despite reporting a strong third-quarter earnings beat on Thursday. Morgan Stanley Analyst Lauren Cassel said that although expectations are high, Nike remains the firm's top pick and recommends buying the dip, as the apparel maker's direct-to-consumer sales are in the early innings. Wells Fargo analyst Tom Nikic called Nike a victim of its own success, but said there is still much to like about the company.
Dual-class stocks to buy are in the news again. Lyft, the ride-hailing app, is looking to go public. On March 18, the company filed an amended preliminary prospectus with the SEC that suggests it will offer almost 31 million of its Class A shares between $62 and $68 a share, valuing it at $23 billion or more.It's very popular with investors, already oversubscribed with a week left until it officially starts trading. People can't get enough of Lyft stock. However, many institutional investors aren't happy about the company's dual-class share structure, sending a letter to Lyft asking that it include a sunset clause in its IPO regulatory filings. Under a sunset clause, the company would designate a future date at which time the dual-class share structure would convert into a one share, one vote scenario. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThese institutional investors don't like the fact that the company's two founders will control 60% of the votes with just a 7% economic interest. They're especially frustrated because Lyft currently operates a one share, one vote structure as a private company. Love them or hate them, dual-class share structures will always be attractive to entrepreneurs who worry that the short-termism that's so prevalent in Wall Street companies is harmful to a company's long-term success. * 7 Beaten-Up Stocks to Buy as They Reverse Course I happen to believe that dual-class share structures, in the hands of good corporate stewards, can deliver above-average rewards, then companies without them.To demonstrate what I mean, here are seven dual-class stocks to buy now. Dual-Class Stocks to Buy: Brown-Forman (BF.B, BF.A)Source: Shutterstock George Garvin Brown IV is the chairman of Brown-Forman (NYSE:BF.A, NYSE:BF.B), the Louisville distiller behind Jack Daniel's and other whisky brands. The Brown family control more than 50% of the company's Class A shares. The Class B shares do not come with votes providing the family with a built-in succession plan. It's the ultimate family business. When George Garvin Brown became chairman in 2007, he went to work with former CEO Paul Varga -- Varga retired December 31, 2018, after 15 years in the top job -- to create a "family engagement" committee to keep all the Brown family members, most of whom didn't work at the company, engaged and informed, so that a dual-class share structure wasn't the only thing keeping it in the familial hands. "It's their biggest asset; it's what makes them unique," said Professor Lloyd Shefsky in 2015. "But there has to be something more for people to go through the extra effort, and sometimes trauma, of continuing family ownership of the business. … Families generally don't work on that enough."Since Brown IV has been chairman, Brown-Forman stock has appreciated by 493%, or 16.7% annualized. Not bad considering he took over at a time when the economy was ready to collapse, and nobody was drinking whisky. Boy, have times changed. Constellation Brands (STZ, STZ.B)Source: Shutterstock Lost in the excitement of Constellation Brands' (NYSE:STZ, NYSE:STZ.B) multi-billion-dollar cannabis investment is the fact that the company has a dual-class share structure, with Class A shares getting one vote per share while Class B shares get 10 votes each. Brothers Rob and Richard Sands control the company by owning almost all of its Class B shares. Overall, they have 59% of the all the votes, which translates into a 16% economic interest in Constellation Brands.Recently, Rob Sands stepped down as CEO, to become executive chairman, with the COO, Bill Newlands, stepping into the top role. Rob Sands was the driving force behind Constellation Brands making a $4 billion investment in Canopy Growth (NYSE:CGC). As executive chairman, he'll oversee the company's investment including its push into cannabis-infused drinks. Whether you're talking about its bold move to buy the Modelo beer business in the U.S. a few years ago or its efforts to add a platform for growth beyond beer, spirits, and wine, there's a good chance none of this happens if the Sands' brothers didn't have the ability to look well into the future. * 10 Stocks on the Rise Heading Into the Second Quarter Institutions might hate the idea that someone with 16% ownership, controls the business, but when you consider how much effort the family has put into the company -- father Marvin founded it in 1945 -- I wouldn't want anyone else other than the Sands calling the shots. They dream big, and shareholders will be rewarded over the long haul for allowing them to do so. Dual-Class Stocks to Buy: Brookfield Asset Management (BAM)Source: Shutterstock If you're not familiar with the alternative asset manager that recently acquired 62% of Los Angeles-based Oaktree Capital (NYSE:OAK) for more than $4 billion, Brookfield Asset Management (NYSE:BAM) is now about the same size as Blackstone (NYSE:BX) in terms of assets under management. Brookfield CEO Bruce Flatt got a new platform for growth in credit and distressed debt while adding to the company's bench -- Oaktree co-founder Howard Marks will remain at Oaktree for the foreseeable future -- and more importantly, making Brookfield a full-service asset manager. "Brookfield is a leading player in infrastructure, real assets and real estate," David Fann of TorreyCove Capital Partners said about the deal. "Oaktree is a dominant distressed debt player. After this deal, Brookfield will become a major global provider of alternative investments with offerings that work in both up and down markets."Again, I'll make my point. The dual-class share structure is only a problem in the absence of talent and vision. Bruce Flatt has plenty of both. Estee Lauder (EL)Source: Shutterstock 2018 wasn't a great year for long-time Estee Lauder (NYSE:EL) shareholders; its stock delivered an annual total return of 3.5%. That's okay. As bad as that might seem, it was still 787 basis points higher than the S&P 500. And besides, it's up 24.5% year to date, and if it can hold those gains this is the fifth year in the past decade with an annual total return more than 20%. If you invested $10,000 in Estee Lauder stock a decade ago, today you'd have more than $145,000.Led by CEO Fabrizio Freda, who has been in the top job since 2009, the executive chairman's role is held by William Lauder, who was CEO for a short time before Freda joined the company. The Lauders, who control the company with 87% of the votes, have four board seats out of a total of 16, ensuring that the business goes where they want it to go. I first recommended Estee Lauder stock in April 2013. Since then, I've suggested it on several occasions into 2019. * 5 Cloud Stocks to Help Your Portfolio Fly As consumer stocks go, I like it as long as the Lauder family has a control position in the company. They know how to exert influence without getting in the way. Nike (NKE)Source: Shutterstock Whenever you read about Nike (NYSE:NKE), it's rare that you see anything that talks about Phil Knight's baby having a dual-class share structure, but it surely does, although not in an obvious way. It has Class A and Class B shares, but there's no 10:1 ratio in terms of votes, or 20:1 in the case of Lyft. No, it uses a more subtle form of control. If you dig into the proxy, you'll see that Class A shareholders elect 75% of the board members and Class B shareholders to elect the rest. Currently, there are 12 directors with nine voted on by the Class A shareholders and three voted on by the Class B shareholders. Care to guess who one of the Class A shareholders is? None other than Travis Knight, Phil Knight's son. Another thing you'll notice is that Swoosh LLC holds 78% of the Class A shares ensuring that Nike's board is stacked with people the founder can trust. It's a slightly different take on the dual-class share structure, but it ultimately is intended to ensure that the company maintains the vision of its founder. As successful as Nike has been, what's not to like? Square (SQ)Source: Via SquareJack Dorsey is CEO of both Square (NYSE:SQ) and Twitter (NYSE:TWTR). Square went public in November 2015; Twitter IPO'd two years earlier in November 2013. Interestingly, Twitter chose to issue only one class of shares, but Square decided to issue two classes. Why is that?Well, a Wall Street Journal article in August 2015, before the company went public, used an interesting analogy with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), then known as Google, that might provide a clue. "From a governance perspective, investors could view 'Alphabet less as a public company than a public-private company hybrid,'" the Journal's Emily Chastan stated at the time, quoting corporate governance expert John Wilson. "Because the company has an unequal voting structure, the founders of Google are uniquely able to take risky bets on new technology, while simultaneously growing the company's mature search and advertising business."So, it's possible that Dorsey and company felt that Square needed greater oversight and control, protecting it from the short-term nature of most investors. We'll probably never know for sure. However, what we do know is that Dorsey has 45% of Square's voting power, but only 16% of its equity, whose shares are worth $4.9 billion. Over at Twitter, he has 2.4% of the equity, worth $586 million. Considering Square's market cap is 32% greater than Twitter's, it seems Dorsey made the right call. Dual-Class Stocks to Buy: Berkshire Hathaway (BRK.A, BRK.B)Source: Shutterstock If it weren't for unit investment trusts, you might not be able to buy Class B shares of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) today. Warren Buffett introduced a second class of shares in May 1996 in response to regular investors seeking a backdoor by buying units of these trusts to get a piece of the Class A shares, which were trading around $22,000 at the time. Baby B's would be worth 1/30th the value of the Class A shares and 1/10,000th the voting rights. "As I have told you before, we made this sale in response to the threatened creation of unit trusts that would have marketed themselves as Berkshire look-alikes. In the process, they would have used our past, and definitely nonrepeatable, record to entice naive small investors and would have charged these innocents high fees and commissions," Buffett wrote in the company's 1996 shareholder's letter. How about that, even back then, the Oracle of Omaha was railing against high fees in the mutual fund business. Almost 15 years after issuing the B shares, Berkshire Hathaway split them 50-to-1 so that Burlington Northern shareholders could share in the company's future success. Today, the B shares are worth 1/1,500th of a Class A share while the voting rights have stayed the same. If not for Warren Buffett's stand on fees a long time ago, a lot fewer people would likely own the company's stock. That would be a bad thing. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Dual-Class Stocks That Will Outperform appeared first on InvestorPlace.
With the market facing some heavier than usual selling pressure to end the week, there have been no bargain buyers for Nike shares on Friday. With the start of NCAA March Madness, I've seen a few references to the infamous Nike Breakaway Shoe (hat tip to Jeff Macke on coining the phrase), but for the most part it seems those concerns have faded quickly. Overall, I viewed Nike's results as good, not great.
Check out the companies making headlines midday Friday:Tiffany TIF — Shares of Tiffany rose 3.2 percent after the jewelry retailer reported mixed fourth-quarter results . The retailer reported earnings of $1.
Because the company has been doing so well and the stock has been trading so strong -- up more than 31% from those December lows -- growth investors and momentum traders have wanted a piece of this name. Investors eventually realized this was a mistake and began gobbling up Nike stock, leaving few buyable dips for investors over the next few months. Now we have one, we just need to determine where Nike stock could fall to.
Shares of Nike Inc. (NKE) fell 4.69% to $83.88 in after-hours trading on Thursday after the company released results for its third quarter of fiscal 2019. Thanks to strong revenue growth and higher gross margin, the U.S. global footwear and accessories company beat consensus estimates by 3 cents on GAAP earnings, posting 68 cents per diluted share. The result cannot be compared with the loss of 57 cents that Nike recorded in the prior-year quarter due to effects from tax reform.