Under Armour: Moving Beyond 2019 Levels
- Under Armour smashed analyst estimates, producing revenues topping 2019 levels.
- The company boosted gross margins by 370 basis points to 50.0%, providing substantial leverage to the bottom line.
- The stock is cheap trading at 2x sales targets, far below peers.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
While Under Armour (UAA, UA) reported a strong quarter that blew past analyst estimates, the stock is selling off despite the company smashing past 2019 numbers. The performance athletic apparel maker is in the midst of a massive turnaround, but the market isn't able to distinguish the rebound from Q1 shutdowns. My investment thesis remains more bullish on the stock long term.
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