Under Armour (Ticker: UA) has been beloved, then hated by investors. They went from being a serious competitor to Nike and Adidas, then started to lose market share…quickly. Essentially left in the dust as the shoe market drove up sales for their competitors, UA was not getting the same demand in footwear. If you do not understand the importance of high demand shoes, then you have not seen the aftermarket for certain styles and releases. This has been the primary reason why NKE and ADDYY have rallied so much, while UA is just slowly moving along. However, UA is moving higher and that is a great thing. I love the upside in this company, both in the near and long term. While I do not think they have a blowout ceiling like NKE, I do think it is possible to see UA back to the $40 range by the end of the year. Yes it would have to be a huge blowout rally for that to take place, but what do you think will happen if a trade deal with China gets done AND the FOMC rate cut takes place? Under Armour is up over 50% for the year at the 52-week high. That high was just last week. This stock is bullish and investors are flooding in. Time to keep a very close eye on this name. If support remains near the $25 price range, I expect range extension and then some sooner than later.
Follow me on Twitter: @DiscipleOfTrend