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?
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.
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.