Under Armour: Another Gift
- Under Armour reported solid FQ4'23 numbers despite ongoing margin pressures.
- The athletic apparel company faces a tough start to FY24 due to elevated inventory levels leading to a continuation of the promotional activity.
- The stock is crazy cheap at 0.5x FY24 sales targets while the company produces better metrics than peers trading at a far higher multiple.
The current stock market is very bipolar where stocks trade more based on history than actual comparative results. Under Armour (NYSE:UA, NYSE:UAA) is a prime example of a stock struggling to impress the market with similar or not better results than market darling Nike (NKE). My investment thesis remains ultra Bullish on the athletic apparel stock trading at a massive discount to peers.
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Disclosure: Long UA. Please review the disclaimer page for more details.