Stock Report: Under Armour

So, let me start by saying that Under Armour is an athletic apparel business valued at $16.52 billion, which makes it a large cap stock. Some of UA’s competitors are Nike and Adidas. To compare, Nike, Inc. is also a large cap stock, valued at $86.21 billion and Adidas is valued at $34.22 billion. Under Armour was founded in 1996 and is one of the top suppliers of sports and casual apparel. It now endorses many big name athletes such as Cam Newton, Stephen Curry, Tom Brady, Bryce Harper, Jordan Spieth and many more.

Recent News

Oct. 16: Under Armour will replace Majestic as MLB on-field jersey supplier

Under Armour makes deal with MLB, and reportedly will become on-field jersey supplier for MLB players starting in 2020. For the company, this is huge. Every MLB player will wear jerseys with UA branding. This is great advertisement on-field, as well as off. Anyone who sports a new Bryce Harper jersey will have a small Under Armour logo on their chest. This will increase earnings and advertisement for the company in general.

Oct. 21: Under Armour unveils the Curry 3 basketball shoe

underarmour2This past Friday, the Curry 3 was unveiled in San Francisco, set to release on October 25th. Under Armour’s popularity has skyrocketed along with the Curry shoes over the past few years. Stephen’s first signature model, the Curry 1, retailed for $120. The Curry 2 retailed for $130, the 2.5 $135, and the upcoming 3 will be $140. The Curry line is one of the best-selling players’ sneaker lines out right now. Presumably, the popularity of the brand will only increase when the Golden State Warriors, seemingly the most overpowering team in basketball history, begins its season on October 25th. Stephen will receive more press than ever and should drive up the stock of Under Armour substantially.

Stock

The stock itself costs $37.94 and is brutally overvalued with a 98.55 P/E ratio. (The P/E Ratio is used to measure a company’s current share price relative to its per-share earnings.) The company will report its third quarter earnings and there should be no surprise earnings. Based on recent news, this stock is a long-term buy and hold for investors. Even though overvalued, the company is slated to do well beyond 2020. Within the next year, earnings should be up with what will be one of the top-selling basketball shoes on the market. Overall, the company is overvalued with a bright future and large upside.

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