It's a runaway trade.
Shares of Under Armour have gained nearly 30% this year, outpacing the broader market's 16% gain.
On Thursday, shares of the athletic apparel retailer gained as much as 4% after the company reported first-quarter results that topped expectations for earnings and revenue. The company also raised its full-year forecast, noting that international revenue grew 12%.
Despite the stock's big run this year, two experts say there's more upside ahead. From a technical standpoint TradingAnalysis.com founder Todd Gordon argues that the stock is in an uptrend and can take out new highs, while Michael Bapis of Vios Advisors at Rockefeller Capital says the apparel company has reignited sales growth, which will lead to continued outperformance.
"The long-term chart here on Under Armour, it got a little dodgy down around $12. We almost lost long-term uptrend support but we managed to hang on there," Gordon said Thursday on CNBC's "Trading Nation" show. "It looks like support has held, and we can move up."
If the stock can surpass the $25 level, which has provided overhead resistance in the past, Gordon sees a clear path to $30.
"We still have a lot of wood to chop around the $25 mark. There's a series of old highs. There are certainly by-stops that are wanting to go off here if we can get up. ... I would be looking to play this as a trade, so above $25 brings you up to $30 and potentially new highs."
At $23 on Thursday, Under Armour shares are 30% away from capturing $30. The stock last traded at that level in January 2017.
Under Armour's year-to-date surge notwithstanding, shares are still about 80% from their September 2015 all-time intraday high. Among other things, the company has been plagued by excess inventories and slowing North American sales in the hypercompetitive athletic apparel space.
Bapis believes that while the stock was "the problem child last year," the company is actively addressing its issues — a broad restructuring plan was announced last year — which will lead to shares recapturing their old high.
"They had bloated inventories that are now down 24% year over year. They've reignited sales growth, which is huge for this company. And they're in a space that the consumer must have these clothes. We think it's going to continue growth. …. We see it higher over the next 6-12 months," he said on the show.
Disclosure: Vios Advisors at Rockefeller Capital owns shares of Under Armour.