Under Amour Continues to Rally

Under Armour, Inc (UA)

Sports apparel retailer, Under Armour Inc., is on a magnificent run, up 126% over the past 12 month and 60% since the beginning of the year.  Their second-quarter fiscal 2014 results weren’t too shabby either, with total revenue coming in at $609.70 million, up 34.1% year over year.  Under Armour’s largest product category, Apparel, saw sales soar once again.  Apparel sales jumped nearly 36% to $420.00 million.


Footwear net revenue also climbed 34.2% to $109.5 million during the quarter due to new products in running.  Management remains impressed with its quarterly performance, particularly its footwear segment.  Taking cue from the strong fiscal performance, Under Amour has raised its guidance for fiscal 2014.  Revenue is anticipated to range from $2.98 – $3.00 billion for the year, reflecting a growth of 29%-29% over last year.

The self-learning algorithm from the I Know First Top Stock Picks and S&P 500 forecast on July recently recommended UA for the 1-month time horizon. The stock was the top-performing asset in the forecast with a return of 18.68%. The average return from this forecast was 6.98% beating the S&P 500’s return of 2.59%.

Under Amour is up 36% since the last forecast and 18% in the past week alone.


The color-coded forecast is very easy to read where green indicates a bullish signal and red indicates a bearish signal. Deeper greens signify that the algorithm is very bullish and vice-versa for deeper reds. The signal is the number flush right in the middle of the box and the predicted direction (not a specific number or target price) for that asset, while the predictability is the historical correlation between the prediction and the actual market movements. In other words, the signal represents the forecasted strength of the prediction, while the predictability represents the level of confidence. These are two independent indicators but consider both as you make your own analysis. In this forecast UA had a fair signal of 16.48 and a very strong predictability of 0.48. While Under Armour was only the 10th best-recommended pick, the algorithm highlighted its bullishness with a deeper green color.