Nike shoes vs. Under Armour shoes

Nike has long been a household name synonymous with athletic apparel, but it seems that newcomer buy under armour shoes australia Inc (NYSE:UA) is becoming a viable threat to Nike’s status. Although Nike remains at the top, Under Armour recently muscled out Adidas to claim the number two slot for most popular sportswear company.

Even though Nike’s $98.41 billion market caps trumps that of Under Armour’s of $21.95 billion, Under Armour recently announced growth plans that are giving Nike investors reason to worry. On September 16, Under Armour announced an accelerated long-term net revenue target, revealing that the company anticipates revenue of $7.5 billion by 2018. This figure marks a compounded annual growth rate of 25% when compared to the company’s 2014 net revenue of $3.1 billion.

under armour shoes australia
under armour shoes australia

cheap under armour shoes CEO, Kevin Plank, commented, “The investments we have made and will continue to make are a testament to the extended runway of growth we see ahead and provide us with the confidence in raising our long-term net revenues growth rate target from +22% to +25%. Building off of the incredible consumer demand we are experiencing for the brand, we firmly believe we are just getting started in our pursuit to become not only the definitive performance sports brand, but a truly great global brand.”
Analysts have voiced both bullish and less-than-enthusiastic opinions on Under Armour. Last week, Morgan Stanley analyst Jay Sole maintained an equal-weight rating on the stock, noting that heavy investments limit margin growth in the near-term. However, Sole expects these investments “to deliver strong returns over time.” On the other hand, analyst Jon Kernan of Cowen reiterated his outperform rating on UA last week and raised his price target from $112 to $120, commenting that the company’s revised revenue forecast could be conservative.
Under Armour itself was an underdog in the field for a quite a while. CEO Kevin Plank founded the company in 1996 at age 23 and famously sold products out of the trunk of his car. The company picked up steam in 1999 after receiving product placements in two movies, and eventually went public in 2005. Is it fair to say that Under Armour has grown out of its underdog status? The company most recently reported quarterly revenue of $784 million in July; marking a 29% year-over-year increase. Although this is an impressive figure that demonstrates strong growth, it is dwarfed in comparison to Nike’s most recent quarterly revenue of $7.8 billion.

buy under armour shoes online CEO Kevin Plank does not seem worried or intimidated by Nike, commenting, “We’re incredibly bullish about the momentum of the brand, the athletes we have, the stable [figures]

let me tell you here’s why Under Armour shoes stock is a slam dunk

It’s pretty much a foregone conclusion that the spokesperson for under armour shoes Steph Curry and the Golden State Warriors are going to demolish the competition as this year’s NBA season winds down. The only real question is whether they’ll keep the pedal down and set a new single-season record for the most wins in NBA history.

However, as Dub Nation roots on their team, the board room at under armour  Inc. UA, -1.77%   also has a lot to cheer about — namely, the fact that the freakishly good Curry is wearing their brand on his feet in every game.

under armour shoes
under armour shoes

The story of how athletics powerhouse Nike Inc. NKE, +0.12%   lost out on Curry — recently chronicled by ESPN — is amazing, complete with mispronounced names and mislabeled PowerPoint slides. But more importantly for investors, the win by Under Armour is indicative of a company that’s committed to going toe-to-toe against Nike with its image.

Not just with Curry, either, but with NFL playmakers Cam Newton and Tom Brady, young golfing phenom Jordan Spieth and iconoclastic dancer Misty Copeland on its roster.

When you look at this branding blitz coupled with key financial metrics that are pointed significantly higher, the future looks bright for this apparel and footwear powerhouse.

Here’s why under armour outlet stock is a slam dunk regardless of any market volatility or consumer spending trouble:

  1. Strong earnings: Under Armour soared by double-digits after its January earnings report, and it’s not hard to see why. The company beat expectations on both its fourth-quarter profit and revenue and saw significant year-over-year growth. Specifically, earnings spiked 20% to 48 cents a share in the fourth quarter from 40 cents a year ago, and revenue increased 30% to $1.17 billion from $895.2 million last year. Those are simply spectacular growth numbers.
  2. Improving technicals: under armour store stock had a rough ending to 2015, with shares slumping more than 30% from their October highs to their January lows. But the tale of the tape is encouraging lately, with earnings fueling a sharp reversal in January after that dip. And since that burst, Under Armour has held firm, with its 20-day moving average crossing over its 50-day average in February and heading steadily higher. Resistance around $85 a share has been persistent in March, but a lack of breakdown thus far coupled with a virtuous news cycle seems to make a move higher likely in the coming weeks — especially if first-quarter earnings in April look good.