I bought 200 shares of Under Armour (UA) at a price of $67.14 per share. I have been looking at this stock for months and with the stock down 5 days in a row, decided to take that opportunity to buy. If the stock continues to go down from here, I might buy more shares at some point in the future, maybe in the high $50’s
I Wish I Had Bought UA Sooner
I’ve written about this stock in my “how I pick stocks” article but I will quickly summarize here. I first noticed this company back in May 2014 when I realized that I was seeing a lot more people wearing the logo than ever before. I also had two (now I have 3) Under Armour shirts that I love because they are so light weight and I live in Arizona.
I looked up the stock price and it was in the high $40 range but I held off buying, hoping to get a lower price. Well, that never happened as the stock promptly shot up in to the $50’s and then all the way into the $60’s and low $70’s. I feel a bit like a fool now buying it at $67 when I could have gotten it originally for about $20 less but that is life. I’ve been waiting for some kind of pull back and the last 5 downward days gave me that.
Why I Bought Under Armour Stock
Under Armour had a great earnings report last quarter (with good forward projections) that shows they are continuing to expand rapidly as they try to gain footing with Nike. They are signing more and more athletes and have moved aggressively into footwear. They are a hot brand right now and a big growth company and that is why investors are willing to pay a higher P/E for the stock.
This is not the usual type of company I buy as they don’t pay a dividend (growth companies usually don’t as they need the money for expansion) and the stock is expensive when compared to its competitors. However, I feel this will be a long term successful growth company that will one day be on the tips of everyone’s tongue just like Nike and Adidas are today. I hope to be able to hold this stock for well over a year and will if their growth story stays intact.
I absolutely love their athletic wear and believe that more and more people will too as they discover the brand. The stuff they sell isn’t cheap but people are generally willing to pay for high quality merchandise that is designed well and made to last. Under Armour stock will hopefully continue to climb as they get more and more exposure.