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Under Armour (UAA) Stock Sinks As Market Gains: What You Should Know

Under Armour (UAA) closed at $19.47 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily gain of 0.92%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Heading into today, shares of the sports apparel company had lost 13.54% over the past month, lagging the Consumer Discretionary sector's loss of 3.45% and the S&P 500's loss of 0.85% in that time.

Under Armour will be looking to display strength as it nears its next earnings release. In that report, analysts expect Under Armour to post earnings of $0.06 per share. This would mark a year-over-year decline of 50%. Our most recent consensus estimate is calling for quarterly revenue of $1.46 billion, up 3.99% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Under Armour. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.7% lower within the past month. Under Armour is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Under Armour currently has a Forward P/E ratio of 24.35. This represents a premium compared to its industry's average Forward P/E of 12.67.

Investors should also note that UAA has a PEG ratio of 0.97 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UAA's industry had an average PEG ratio of 0.96 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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