younder Armor (UAA) closed the last trading day at $16.77, moving -1.47% from the previous trading session. This change lagged the S&P 500’s 0.34% gain on the day. Meanwhile, the Dow gained 0.4% and the Nasdaq, a technology-heavy index, lost 0.47%.
Going into today, shares of the sportswear company had gained 3.46% over the past month, outpacing the Consumer Discretionary sector’s loss of 2.57% and lagging the 3.75% gain in the S&P 500 during this period.
Investors are hoping for strength from Under Armor as it nears its next earnings release. On that day, Under Armor is expected to report earnings of $0.07 per share, which would represent a 56.25% year-over-year decline. Meanwhile, our latest consensus estimate calls for revenue of $1.33 billion, up 5.84% from the prior year quarter.
Zacks consensus estimates for the full year of UAA call for earnings of $0.74 per share and revenue of $5.96 billion. These results would represent year-over-year variations of -12.94% and +4.94%, respectively.
It’s also important to note recent changes to analyst estimates for Under Armour. These revisions generally reflect the latest short-term trading trends, which may change frequently. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection is down 4.96%. Under Armor currently has a Zacks rank of #3 (Hold).
As for its valuation, Under Armor holds a Forward P/E ratio of 23.16. This valuation marks a premium compared to the average Forward P/E of its sector of 11.13.
The Textile – Clothing industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 46, which places it in the top 19% of the 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock movement metrics, and more, at Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.