We always try to strike gold when it comes to selecting stocks. However, global economic headwinds, yet-to-recover Chinese economy, muted growth in the Euro zone and fluctuating commodity prices are leaving us perplexed about which stocks to bank on. The U.S. stock market also displayed a sluggish performance at the start of the year owing to fears of overseas turmoil and plunging oil prices. Although the market has recouped much of the losses, it is yet to breathe a sigh of relief.
But, every cloud has a silver lining, and Under Armour, Inc. UA may be a good bet in the given scenario. So don’t just sit on the fence.
Under Armour’s sustained focus on brand development, expansion of its direct-to-consumer business, product innovation and foray into the technology-based fitness business bode well, as it registered revenue growth of over 20% for the past 23 straight quarters. The company also appears compelling from the earnings perspective. In the trailing four quarters, Under Armour outperformed the Zacks Consensus Estimate by an average of 11.7%, including a positive surprise of 4.4% recorded in the last reported quarter (fourth-quarter 2015).
Under Armour is one such stock that well fits the portfolio of growth investors. This designer, marketer, and distributor of authentic athletic footwear, apparel, and accessories carries a Zacks Rank #2 (Buy) and has a long-term earnings growth rate of 24.3%, which appears far better than the industry average of 14.9%, thus clearly suggesting solid prospects. There’s more to feel good about this stock, which is expected to witness earnings growth of 24.7% in 2016 and 27.8% in 2017.
All these financial indicators are considered in the company’s Growth Style Score of “A” based on Zacks’ new Style Score System.
It is quite apparent that the market has witnessed a slew of events and to fetch higher returns amid such an investment climate is a difficult task. Well, now there are two choices in front of you; either be a mute spectator and wait for a convincing economic environment, or be a front-runner and winner by identifying stocks that have the potential to outperform even when market conditions are not congenial.
We have not restricted our article to just one stock. Instead we have identified three more stocks that look promising based on their favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or #2 and encouraging Growth Style Score of “A”.
Other Prominent Choices
ULTA Salon, Cosmetics & Fragrance, Inc. ULTA, one of the leading beauty retailers, is a solid bet, with a Zacks Rank #1 and a Growth Score of “A”. The Bolingbrook, IL-based company delivered an average positive earnings surprise of 7.7% over the trailing four quarters, and has a long-term earnings growth rate of 19.5%. The company is expected to witness earnings growth of 19.7% in fiscal 2016 and 21.2% in fiscal 2017. The Zacks Consensus Estimate too has been trending up over the past 30 days.