Under Armour, a Baltimore-based company incorporated in 1996, is one of the leading marketers, designers, and distributors of athletic apparel, footwear, and accessories for a wide variety of fitness and sports activities in the US and worldwide. Besides sporting goods, the company also offers lifestyle products. The company sells its goods through chains of retailers nationally and across the regions and even uses the outlets of smaller specialty retailers who operate independently. In addition, the company uses the network of brand and factory house stores to sell its merchandise while utilizing the opportunities of online selling through its website and catalogs. The company’s net sales in 2020 came from apparel (68%), footwear (22%), and accessories (10%). Under Armour (UAA) stocks have been consistently receiving Zacks ‘Buy’ rating for some time, which might make you consider buying under Armour stock.
What to consider before buying under Armour stock?
Buying any stock needs good research for understanding the reality that bears some indications about the stock’s prospects. First, you must understand, is under Armour a good stock to buy? Numerous predictions and analyses by analysts of the stock market are available online that tell different stories. As the forecasts and predictions are contradictory, you must apply your judgment by closely winging the company’s performance over the past year and relating its impact on share prices. But remember that the share price is never an accurate indicator of the company’s growth potential. Since various factors drive the share price, often the share price does not reveal its actual worth.
A close look at the Under Armour shares
By closely following under-Armour stock news over the past year, you can gather insights about which way things are moving. The first thing that you should know is the ticker or the code name by which the stock markets recognize the company. Interestingly, Under Armour has two and not one ticker to its name- UA and UAA. UAA is the ticker for class A shares that extend voting rights to shareholders, and the ticker UA does not offer voting tights. Therefore, you must decide whether you should buy UAA or UA shares.
Under Armour, shares make a good beginning in 2022
Under Armour, shares started the year 2022 on a high note. On January 4, 2022, Class A shares or UAA shares reached $21.49, up by 1.2%. In 2021, these shares had a return of 23.41%, while the Class C shares (UA) posted a return of 21.24%, as per Dow Jones market data. According to many market analysts and experts, under Armour stock can be a good bet for investors because of the company’s revenue potential and earnings outlook. Those who see high potential in the company in 2022 base their forecasts on the positivity stemming from the management’s transformative actions as they aim at improving full-price selling in the US. The company posted good returns on investment in marketing through 2021. Those investments would continue through 2022, as confirmed by the company’s CEO Patrik Frisk while talking to investors during the earnings call in November 2021.
Q4 revenues and earnings
In the fourth quarter, the company continued its good run based on increased consumer demand and greater brand strength. The results reflected growth across the international markets and North America. The company’s top and bottom line increased year on year and surpassed Zacks Consensus Estimate.
Adjusted earnings per share were 14 cents against Zack’s estimate of 6 cents, and 12 cents reported a year ago. Net revenues of $1529.2 million, up 8.9% from a year ago. The top-line grew by 8.9%, and the wholesale revenue of $768 million increased by 16%. Direct to consumer revenue went up to $720 million, an increase of 10% e-commerce posted a 4% increase.
According to the CNN Business under Armour stock forecast based on the findings of 21 analysts, the median target of under Armour stock price is $25.The investment analysts reached a consensus in giving a ‘Buy’ rating. This information should help you do your analysis to decide about buying under Armour stock.
