4-Star Stocks Poised to Pop: Under Armour

Based on the aggregated intelligence of 115,000 investors participating in Motley Fool CAPS, the Fool's free investing community, athletic-apparel maker Under Armour (NYSE: UA  ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Under Armour's business, and see what CAPS investors are saying about the stock right now.

Under Armour facts

Headquarters (Founded)

Baltimore, Maryland (1995)

Market Cap

$1.57 billion

Industry

Apparel Clothing

TTM Revenue

$675.72 million

Management

Founder, CEO Kevin Plank
CFO Brad Dickerson

Return on Equity (avg. last three years)

21.2%

CAPS members bullish on UA also bullish on

Google (Nasdaq: GOOG  )
Cemex (NYSE: CX  )
Buffalo Wild Wings (Nasdaq: BWLD  )

CAPS members bearish on UA also bearish on

General Motors (NYSE: GM  )
Ford Motor (NYSE: F  )
Crocs (Nasdaq: CROX  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 462 of the 508 All-Star members who have rated Under Armour -- some 91% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include FAOFool and nemaline, both of whom are ranked in the top 5% of our community.

In April, FAOFool noted that Under Armour "has shown a considerable deftness in its ability to reach out to university sports programs, professional athletes, etc., given the competition (Nike, Addidas, etc.) ... I like their potential from here ... especially when one considers the size of the competitors [Under Armour] is currently beating."

A more recent pitch from nemaline just last week followed that bullish line of thinking, highlighting the company as an innovative frontrunner:

Under Armour rules! Although not as well advertised at the Olympics as I would have thought, they are burrowing into the American landscape. Great growth that continues, and the company is always innovating and finding new stuff for consumers to buy--like shoes. As a runner, I find myself buying more and more UnderArmour products. And now I own the stock, thank you.

What do you think about Under Armour, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Under Armour is a Motley Fool Hidden Gems and Rule Breakers pick. Google is also a Rule Breakers recommendation. Cemex is a Global Gains and Stock Advisor selection. Buffalo Wild Wings is a Hidden Gems pick, while Crocs is a Hidden Gems Pay Dirt choice. The Fool owns shares of Under Armour, Cemex, and Buffalo Wild Wings. Try any of our Foolish newsletter services, free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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