Have You Shown Your Armour Today?

Have You Shown Your Armour Today?

The best stock to buy long term is Under Armour (NYSE:UA and NYSE:UA.C). Under Armour is a sports apparel company. It was founded in 1996 by Maryland Terrapins football player Kevin Plank, and Plank is still the CEO today. When Under Armour broke out, they used “ColdGear” and “HeatGear” as products. In addition, they are the third largest sporting apparel company today.

I am not holding Under Armour in the Stock Market Game (SMG), but I am in my UTMA account. The reason why is because Under Armour will not make the best short-term return due to the length of the SMG spring session, but it will make a great long-term investment. It is a new company in its industry, and has not completely broken out since its IPO. Under Armour is expanding and not to its full potential yet. However, a lot of big companies started out this way.

Under Armour’s main competitors are Nike (NYSE:NKE), Columbia (NASDAQ:COLM), and Adidas (OTCMKTS:ADDYY). Under Armour has a market cap of $19.47 billion, Nike has a market cap $100.09 billion, Columbia has a market cap of $4.02 billion, and Adidas has a market cap of $23.40 billion. Under Armour is a young company, but they are already in the middle in terms of market cap for their industry. One main way that Under Armour competes is by using top athletes, such as Jordan Spieth, Cam Newton, and Steph Curry. Another way is by having a variety of products, including lines of women’s clothes, men’s clothes, and youth clothes. It also retails sports equipment and athletic shoes. Furthermore, the company uses advertising slogans that catch your attention.

The keystone on investing in Under Armour is it is better than the competition because it has growth potential. Under Armour is still well on their way to riches. Also, possibly the craziest Under Armour stat of all is that it has only missed earnings once, and that was by one cent. Debt in this company is astutely low and has only a 28.62% Total Debt/Capital (TTM), and it is at the 38th percentile for its industry. Moreover, Under Armour is gaining market share. When it had its IPO in 2005, the market cap was $1.66 billion. It has a good chance of reaching the $50 billion market cap in the future, since it has surpassed the starting market cap 10-fold.

After all of this going on at Under Armour, shareholders will make a lot of money. It has had a great past, and it looks like it’s going to have a lot of money. Their common stock recently underwent a 2 for 1 split. Under Armour is releasing earnings on April 21, and I encourage you to watch the release. So hop on the shareholder train and ride your way to profits.

Esteban Ortiz

Spring 2016

Elementary School Division

1st Place in State -InvestWriteWinner