Over the past 6 months shares of Under Armour have jumped about 100%. How should you trade the stock now?
KeyBanc analyst Edward Yruma wrote in late August that the sports gear seller has the potential to double revenues within the next 3-5 years.
However, Yruma was less than enthusiastic about the company’s near-term prospects citing their new running shoes as a drag.
Under Armour reported a drop in footwear sales in July, forcing it to mark down prices and increase its cash reserve for product returns.
"We believe that UA is taking the right steps to expand footwear as its second leg of growth; however, we think that results could be pressured until late 2010 or beyond," Yruma told investors in a research report.
So how should you trade Under Armour? Don’t make a move until you’ve seen our interview with CEO Kevin Plank.