ValuEngine SELL UnderArmour Posts Disappointing Earnings

For today’s bulletin, we take a look at our latest upgrades and focus on UnderArmour $UAand provide a link to download a FREE STOCK REPORT on the company

VALUATION: Overvalued stocks now make up 55.34% of our stocks assigned a valuation and 22.01% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.

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For today’s bulletin, we take a look at one of our SELL-rated stocks, UnderArmour (UA). Under Armour, Inc. is involved in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. It operates primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific and Latin America. The company’s Under Armour Connected Fitness(TM) platform provides digital health and fitness community through UA Record, MapMyFitness, Endomondo and MyFitnessPal applications. Under Armour, Inc. is headquartered in Baltimore, Maryland.

The company reported earnings yesterday and the market did not like what it heard. Shares tumbled almost 10% in pre-market trading after the results showed a net loss of $12.3 million–$0.03/share. The sell off occurred despite the fact that the company beat expectations slightly for the quarter. The company also announced a restructuring plan that will include @280 job cuts and restructuring charges of @ $110-130 million.

The company lowered expectations– slightly– moving forward. They now believe that net revenues will grow 9 to 11 percent versus the previous expectation of 11 to 12 percent growth Gross margin, on a reported basis, is expected to be down approximately 160 basis points compared to 46.4% in 2016 as benefits from product costs and sales mix are offset by impacts from the restructuring plan, changes in foreign currency and increased efforts to manage inventory. Excluding the impact of the restructuring, adjusted gross margin is expected to be down at least 120 basis points compared to 46.4% in 2016.

Despite the bad news, UA CEO Kevin Plank tried to put a positive spin on the results by noting that

our second quarter performance validates the strength of our multiple growth levers to deliver solid results in today’s dynamic global environment. More than doubling our business over the last three years has required significant investments and resources to build our brand. We are utilizing 2017 to ensure that operations across our diverse portfolio of sport categories, distribution channels and geographies are optimized as we are building a stronger, faster and smarter company.

Below is our latest data for UnderArmour (UA):

ValuEngine continues its SELL recommendation on UnderArmour. Based on the information we have gathered and our resulting research, we feel that UnderArmour has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Sharpe Ratio and Momentum.

You can download a free copy of detailed report on UnderArmour (UA) from the link below.


ValuEngine Forecast
1-Month 18.02 -0.49%
3-Month 18.29 0.99%
6-Month 17.75 -1.96%
1-Year 17.04 -5.92%
2-Year 17.65 -2.53%
3-Year 18.11 0.01%
Valuation & Rankings
Valuation n/a Valuation Rank(?) n/a
1-M Forecast Return -0.49% 1-M Forecast Return Rank 18
12-M Return -49.27% Momentum Rank(?) 8
Sharpe Ratio -1.54 Sharpe Ratio Rank(?) 3
5-Y Avg Annual Return -60.43% 5-Y Avg Annual Rtn Rank 9
Volatility 39.15% Volatility Rank(?) 42
Expected EPS Growth 20.51% EPS Growth Rank(?) 57
Market Cap (billions) 3.94 Size Rank 79
Trailing P/E Ratio 34.83 Trailing P/E Rank(?) 42
Forward P/E Ratio 28.90 Forward P/E Ratio Rank 16
PEG Ratio 1.70 PEG Ratio Rank 29
Price/Sales 0.80 Price/Sales Rank(?) 75
Market/Book 2.84 Market/Book Rank(?) 42
Beta 1.18 Beta Rank 30
Alpha -0.76 Alpha Rank 5


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