NYSE:UAA) for half a decade as the share price tanked 78%. And it’s not just long term holders hurting, because the stock is down 48% in the last year. On the other hand the share price has bounced 6.3% over the last week.” data-reactid=”28″>Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you held Under Armour, Inc. (NYSE:UAA) for half a decade as the share price tanked 78%. And it’s not just long term holders hurting, because the stock is down 48% in the last year. On the other hand the share price has bounced 6.3% over the last week.
See our latest analysis for Under Armour ” data-reactid=”29″> See our latest analysis for Under Armour
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
In the last half decade Under Armour saw its share price fall as its EPS declined below zero. At present it’s hard to make valid comparisons between EPS and the share price. However, we can say we’d expect to see a falling share price in this scenario.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.” data-reactid=”49″>This free interactive report on Under Armour’s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
1 warning sign for Under Armour that you should be aware of.” data-reactid=”51″>Investors in Under Armour had a tough year, with a total loss of 48%, against a market gain of about 19%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year’s performance caps off a bad run, with the shareholders facing a total loss of 12% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we’ve identified 1 warning sign for Under Armour that you should be aware of.
list of growing companies with considerable, recent, insider buying.” data-reactid=”52″>We will like Under Armour better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”54″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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