Under Armour (UAA) might be a stable addition to your portfolio given a notable revision within the firm’s earnings estimates. Whereas the inventory has been gaining these days, the development may proceed since its earnings outlook continues to be bettering.
Analysts’ rising optimism on the earnings prospects of this sports activities attire firm is driving estimates increased, which ought to get mirrored in its inventory value. In spite of everything, empirical analysis exhibits a powerful correlation between traits in earnings estimate revisions and near-term inventory value actions. This perception is on the core of our inventory score device — the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Robust Purchase) to a Zacks Rank #5 (Robust Promote), has a powerful externally-audited monitor file of outperformance, with Zacks #1 Ranked shares producing a median annual return of +25% since 2008.
Consensus earnings estimates for the following quarter and full 12 months have moved significantly increased for Underneath Armour, as there was robust settlement among the many protecting analysts in elevating estimates.
The chart beneath exhibits the evolution of ahead 12-month Zacks Consensus EPS estimate:
12 Month EPS
Present-Quarter Estimate Revisions
The earnings estimate of $0.14 per share for the present quarter represents a change of -46.15% from the quantity reported a 12 months in the past.
During the last 30 days, the Zacks Consensus Estimate for Underneath Armour has elevated 88.89% as a result of 9 estimates have moved increased in comparison with no damaging revisions.
Present-12 months Estimate Revisions
For the total 12 months, the corporate is anticipated to earn $0.54 per share, representing a year-over-year change of +307.69%.
The revisions development for the present 12 months additionally seems fairly promising for Underneath Armour, with 12 estimates transferring increased over the previous month in comparison with no damaging revisions. The consensus estimate has additionally acquired a lift over this timeframe, growing 77.75%.
Favorable Zacks Rank
Due to promising estimate revisions, Underneath Armour at the moment carries a Zacks Rank #2 (Purchase). The Zacks Rank is a tried-and-tested score device that helps traders successfully harness the ability of earnings estimate revisions and make the appropriate funding resolution. You may see the whole checklist of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
Our analysis exhibits that shares with Zacks Rank #1 (Robust Purchase) and a pair of (Purchase) considerably outperform the S&P 500.
Backside Line
Underneath Armour shares have added 18% over the previous 4 weeks, suggesting that traders are betting on its spectacular estimate revisions. So, it’s possible you’ll think about including it to your portfolio immediately to profit from its earnings progress prospects.
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Underneath Armour, Inc. (UAA): Free Inventory Evaluation Report
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Zacks Funding Analysis
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.