Under Armour (UA) is the Best 'Tech' Company Out There - Cramer
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Price: $6.30 -0.16%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 19
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 19
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Under Armour (NYSE: UA) shares are looking strong Wednesday amid overall positive market sentiment. Enlightened equities egghead Jim Cramer offered some positive sentiment on the stock during Tuesday evening's Mad Money.
According to Cramer (which makes an excellent band name), Under Armour has enough innovation behind it to be thought of as a tech company. Cramer alluded to Under Armour's moisture-wicking compression apparel for its recent growth. Though the material was invented a while ago, Under Armour's continued efforts to improve it has paid dividends for itself -- and its investors.
What is a good example of what Under Armour has done? Take its Charged Cotton line. Cramer said the clothing dries five-times faster than regular cotton and is perfect for those who prefer natural versus synthetic fibers in their clothing. Under Armour itself said Charged Cotton could quadruple its addressable market.
Cramer is excited about Under Armour unveiling its Storm sweatshirt, a waterproof new product which will repel heat from the sun. The pundit believes the company's advanced running shoe technology to take on benchmark athletic apparel maker, Nike (NYSE: NKE).
Further still, Under Armour is making big strides in attracting women with new apparel and clothing technology offerings.
Cramer likes Under Armour for its pricing power. The technology its using costs a little more, but Under Armour is able to pass those costs onto the customer to keep margins robust. Though Under Armour stock is currently going for about 29 times earnings, its 20 percent growth rate and ability to expand into several new markets mean investors would do well to take a second look at the stock.
Shares are up about 1 percent in early trading.
According to Cramer (which makes an excellent band name), Under Armour has enough innovation behind it to be thought of as a tech company. Cramer alluded to Under Armour's moisture-wicking compression apparel for its recent growth. Though the material was invented a while ago, Under Armour's continued efforts to improve it has paid dividends for itself -- and its investors.
What is a good example of what Under Armour has done? Take its Charged Cotton line. Cramer said the clothing dries five-times faster than regular cotton and is perfect for those who prefer natural versus synthetic fibers in their clothing. Under Armour itself said Charged Cotton could quadruple its addressable market.
Cramer is excited about Under Armour unveiling its Storm sweatshirt, a waterproof new product which will repel heat from the sun. The pundit believes the company's advanced running shoe technology to take on benchmark athletic apparel maker, Nike (NYSE: NKE).
Further still, Under Armour is making big strides in attracting women with new apparel and clothing technology offerings.
Cramer likes Under Armour for its pricing power. The technology its using costs a little more, but Under Armour is able to pass those costs onto the customer to keep margins robust. Though Under Armour stock is currently going for about 29 times earnings, its 20 percent growth rate and ability to expand into several new markets mean investors would do well to take a second look at the stock.
Shares are up about 1 percent in early trading.
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