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Behind Under Armour’s Poor Stock Performance

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A look at Under Armour’s stock market performance

Under Armour (UAA) was among the worst performers on the S&P 500 Index (SPY) in 2016, losing 30% of its value during the year. But 2017 has been no different. The company has already fallen 33% YTD (year-to-date) and is among the worst-performing apparel stocks.

By comparison, Nike (NKE) has risen 9% YTD, while Foot Locker (FL) and Sketchers (SKX) have gained 1.7% and 1.6%, respectively, YTD. Lululemon Athletica (LULU) and Columbia Sportswear (COLM), on the other hand, have fallen 21% and 0.4%, respectively, YTD.

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What has been the reason behind the poor performance?

Under Armour’s slower-than-expected growth has been the key reason behind this poor performance. Its stock price plunged 13% after its 3Q16 results as investors reacted to management’s comments on the expected slowdowns in revenues and margins.

UAA’s 4Q16 results had an even worse impact on the stock price, which tanked 25% after the company reported lower-than-expected top and bottom lines and issued a weak fiscal 2017 guidance. The company’s poor financial performance also triggered several downgrades, which negatively impacted the stock price as well.

ETF investors seeking to add exposure to UAA can consider the PowerShares S&P 500 High Beta Portfolio (SPHB), which invests 0.85% of its portfolio in the company.

Continue to the next part for a closer analysis of the latest analyst recommendations for UAA.

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