I believe the athleticwear company's stock will rise for a couple reasons. I feel that the recent Olympics will have provided a boost. International sales are expected to increase. The company is expanding the number of retailers where it markets. It has also innovated its manufacturing center. The combination of these facts bodes well for Under Armour.
Under Armor will continue to have rising stock because they have a quality product. When a person buys Under Armor, they know that they have a product that is going to last through the season, or year, whatever the person needs it for. For this reason, the stock has staying power. The company is also smart with their advertising, such as Duck Dynasty sponsorship.
Yes, Under Armor stock will continue to rise because they have a great business plan and it is hard to not like their products. They sell their clothes for cheap and the material lasts a long time. Their stocks will rise because their sales numbers will increase over the next few years.
It is apparent that even though Under Armor stock has been on the rise recently, but if one considers the consistent decline of the stock during the first three quarters of 2016, the stock could simply be spiking temporarily. This could mean the stock is great for some short term gains, but over the long term there is cause for concern. Mainly, the CEO seems to be in a bit of a panic. He is expanding beyond athletic wear into completely unrelated territory (alcoholic beverages), and this could do damage to the brand. Furthermore, the P/E ratio is a bit high for a long term portfolio investment choice.