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Under Armour (UA) Gets Penalized by Analysts
Yesterday, Under Armour (NYSE: UA) fell 16%. It’s dropped almost 30% over the past month. Today’s price of $18.25 getting close to the 52-week low of $16.05 it reached in November. And to add insult to (sports?) injury, original investors in the athletic wear company will note it’s well below what they paid in the 2005 IPO.
But while many analysts suggest this company may be a one trick pony – akin to Crocs, (Nasdaq: CROX). They couldn’t be more wrong. The reason its share price was penalized was that analysts were expecting $1.09 instead of the .79 reported.
This is a classic case of overreaction from a negative earnings report.
The fact of the matter is that this brand has developed a premium niche within the sportswear market, and it’s expanding that brand recognition to other areas.
Yes, there are numerous knock-offs of their breathable fabrics. And several competitors for the highly coveted retail space they occupy. But you have to hand it to UA. It was able to outmaneuver entrenched companies like Adidas AG (OTC: ADDYY) and Nike (NYSE: NKE). That wasn’t easy.
Under Armour’s integration into professional and college sports, has put its product into the hands of millions of athletes. From younger athletes see their sports idols wearing UA, to the armchair quarterbacks who want to do the same, its specialty sportswear has mass appeal. That brand dominance will allow it to keep its spot for the long haul.
It’s no surprise, really, that it’s being affected by the current economic downturn – like most other companies. But a few missed analyst estimates does not make a company un-investable – or unprofitable.
Companies mentioned in this article: UA, CROX, ADDYY and NKE.
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The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
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