Under Armour (NYSE:UAA) is not at all a cheap stock, but its potential is nothing to sneeze at.

In this clip from the Industry Focus: Consumer podcast, Vincent Shen and Fool contributor Seth McNew talk about what kind of investor the stock is most suited for and how the company's growth looks to continue in the future.

A transcript follows the video.

This podcast was recorded on July 12, 2016.

Vincent Shen: We had a chance so far to talk about some really cool opportunities, I think for Under Armour that should really help drive its growth in the future. Shares of the company have traded up over 300% in the past five years. Its revenue has quadrupled over the same period to about $4 billion in 2015. And based on the last earnings call, management now expects the company to hit the $5 billion milestone for 2016. Annual top-line growth has been incredible. It's been in double digits for well over a decade. 

But, at the same time, I think you and I both know this stock is definitely not cheap. I believe you're an Under Armour investor. How do you think about its valuation? Are there any challenges you can see derailing its growth streak or its success streak?

Seth McNew: Yeah, you're right. I am an Under Armour investor, and I'm kind of lucky that I jumped on the bandwagon pretty early. It's definitely not a cheap stock. It's gained about 15% just in the past few weeks, and that's pushed its price to earnings up to about 77 times. Compare that to a company like Nike (NYSE:NKE) at 27 times. But you know, there just doesn't look like there's a sign of slowing now. Even in the shorter term, they posted 20% quarterly year-over-year gains for the last 24 quarters, or six years. And the most recent quarter is 30%. It just doesn't look like there's a sign of slowing there. And then you think about these long-term investments, and think about how long-term investor you are. Are you looking for a short-term gain? Then Under Armour is probably not the stock for you. There's going to be too much volatility. If you're looking 10-20 years out, I think Under Armour is still a great play, even at this price.

Shen: Fair enough. Something I would like to add to that is just the idea that, if you look at some of their strongest growth areas, like their international segment, and that was just 11% of revenue in 2015. Their footwear growth has been off the charts, especially with some very well-chosen endorsement partnerships with Stephen Curry, for example. And footwear is still only 25% of revenue, and that was for the first quarter of this year. Again, showing phenomenal growth. I think the opportunities are definitely there, and you can see, again, the company has not forgotten how they got here in terms of that innovation with the original product, with the cold gear and the wicking materials, things like that. And they're still pushing in that regard, it seems. 

Seth McNew owns shares of Nike and Under Armour (A Shares). Vincent Shen has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Nike and Under Armour (A Shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.