Under Armour (UA) Not Overvalued Compared with Growth Prospects - Cramer
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Under Armour (NYSE: UA) might be constantly playing second-fiddle to larger rival Nike (NYSE: NKE), but doesn't that mean investors should pass the athletic clothing and footwear maker?
Jim Cramer doesn't think so. He spoke with Under Armour CEO Kevin Plank on Tuesday night, looking to get more insight into the company which has sees a 65 percent gain in its share price and now goes for 43 times expected earnings with a growth rate of 20.5 percent.
Plank said primarily that you can't pay for promotion and the athletes that endorse the company are also believers in the products. That sort of trust bolsters customer loyalty.
Cramer noted that Under Armour might also be thought of as a technology company as well as an apparel maker. Plank agreed, saying that the company has a
While Under Armour doesn't have large international exposure (only 6 percent of sales come from overseas), Plank said it takes a long time to build an international presence. Over the last eight years, the company has worked to become a stronger brand in Japan and now draws $200 million in annual revs from the market with a growth rate of 30 percent.
Cramer is still a
Jim Cramer doesn't think so. He spoke with Under Armour CEO Kevin Plank on Tuesday night, looking to get more insight into the company which has sees a 65 percent gain in its share price and now goes for 43 times expected earnings with a growth rate of 20.5 percent.
Plank said primarily that you can't pay for promotion and the athletes that endorse the company are also believers in the products. That sort of trust bolsters customer loyalty.
Cramer noted that Under Armour might also be thought of as a technology company as well as an apparel maker. Plank agreed, saying that the company has a
deep pipelineof new products and is always looking for a partner to help cultivate the best ideas.
While Under Armour doesn't have large international exposure (only 6 percent of sales come from overseas), Plank said it takes a long time to build an international presence. Over the last eight years, the company has worked to become a stronger brand in Japan and now draws $200 million in annual revs from the market with a growth rate of 30 percent.
Cramer is still a
strong believerin the scrappy athletic apparel company.
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