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Under Armour: This Year’s Best-Performing S&P 500 Apparel Stock

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Under Armour’s stellar stock performance

Under Armour (UAA) is currently the top-performing apparel stock of the S&P 500 Index. The sportswear maker is among the top gainers of the S&P 500 consumer discretionary index. Its Class A and Class C stock have gained ~61% YTD (year-to-date) and trail only Netflix (NFLX) (104%), Trip Advisor (TRIP (69%), and Chipotle (CMG) on the S&P 500 consumer discretionary index. In comparison, the S&P 500 Index (SPY) has surged 3.8% YTD as of June 18.

How have other sportswear stocks performed?

Sportswear stocks are having a great run this year. Nike (NKE) and Columbia Sportswear (COLM) have risen 21% and 29%, respectively, YTD. Lululemon Athletica (LULU) has surged a massive 65%.

Consistent financial performance and returning confidence in athleisure stocks have been behind the sector’s strong performance. Lululemon Athletica, for instance, hasn’t missed Wall Street’s top- and bottom-line expectations for the past five quarters. LULU’s recent quarterly earnings drove its share price 16% higher on June 1.

Nike has also been consistent with earnings beats. It hasn’t missed a consensus EPS expectation for the past 23 quarters.

Under Armour also hasn’t missed bottom-line expectations for the past five quarters, although it fumbled on its top line once.

Stock upside

Wall Street doesn’t see a further upside to Under Armour stock or for any of its close competitors. UAA stock is, in fact, projected to fall 31% over the next 12 months. Nike, Lululemon, and Columbia Sportswear are expected to fall 10%, 4%, and 3%, respectively, over the next 12 months.

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