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Why Under Armor (UA) is a must have in 2017

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January 27, 2017 – Comments (1) | RELATED TICKERS: UA , UAA , NKE

     Often times, investors are very short sighted and can't see past the next quarter earnings or get hung up on a CEO's choice of words in a given conference call.  This shortsightedness, if you will, often presents brilliant opportunities for those of us who are Foolish Investors.  Under Armor (UA) is one of those brilliant opportunities.  This company's stock took a hit this year, plain and simple.  It isn't because they did anything particularly bad.  Sure, they had some inventory issues, but all in all the company had a decent year.  So why did the stock take a beating?

     CEO Kevin Plank unveiled Under Armor's intentions to reinvest in itself.  Under Armor is looking to grow it's stake in international markets and also expand into new interactive fitness technologies.  These are the kinds of movements that make near term quarterly results look not as impressive.  For that reason, Under Armor C shares lost nearly half of their value in 2016.  This creates quite the discount for those of us who are willing to look past the near term results, and focus on long term gains in the market.

     Under Armor has always been a company that accomplishes what it says it is going to accomplish.  I don't expect any changes this time around, either.  At this price point, I believe Under Armor posseses the potential to double possibly even triple in the next 3-5 years.  I believe the company will rapidly grow its international market where it is still largely untapped.  If Under Armor executes this transition as they have in the past, it certainly is a bargain buy at this point and is exactly why Under Armor is a must have stock in 2017.

 

(I have holdings in Under Armor C shares [UA]) 

1 Comments – Post Your Own

#1) On January 28, 2018 at 10:17 PM, JohnnyWad75 (87.14) wrote:

Do you still feel this way about UA?  Was crushed in 2017 as well.

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