A shell-shocked economy, spiraling debt at financial institutions, or just plain bad management -- on any given day, investors can name a number of reasons to sell a stock. Yet while panic never helps investors, it's still a good idea to play devil's advocate with investments from time to time.
Consider athleticwear and footwear designer Under Armour
1. Uncertain macro environment
The current environment is still tough on clothing brands such as Volcom
2. Weak sales
The economy isn't playing favorites. Consumers' spending cutbacks are wreaking havoc on premium retailers such as Abercrombie & Fitch
3. Growing costs
Under Amour's profit margins have lagged those of rivals Deckers Outdoor
Of course, Under Armour has weathered storms in the past. Can it successfully navigate the current turmoil? The uncertainty surrounding the company makes CAPS a great resource to augment your own analysis.
Under Armour is one of dozens of stocks selected by the Motley Fool Rule Breakers service to beat the market over the long haul. To see all the stocks David Gardner and the analyst team have recommended, take a free 30-day trial today.
Fool contributor Dave Mock usually takes about three tries before he hits a free throw. He owns no shares of companies mentioned here. Under Armour is a Rule Breakers recommendation. Columbia Sportswear, Under Armour, and Volcom are Motley Fool Hidden Gems recommendations. The Fool owns shares of Under Armour. The Fool's disclosure policy can hit a bottle cap from 50 yards with its Red Ryder BB gun.