If you’re looking for a great stock to invest in, from a company that has been growing consistently for a number of years and is one of the innovators in their industry, Under Armour is an excellent choice. While many investors believe that their stock is overvalued, the considerations we’re going to show you below should convince you that it’s a solid investment and would make a valuable addition to your portfolio.
One of the most impressive facts about the company is that they have had a consistent growth rate of 20% or more over the last several years, as well as the fact that they are constantly and intently focused on improving the experience that their customers receive from their products and customer service.
In fact, Under Armour could easily be compared to Amazon.com because of their dedication to innovation, developing differentiated products and providing their customers with a unique and highly satisfactory experience.
Under Armour has focused on customer service relentlessly. Their customer service guarantee says it all: “Our Mission is clear: Make All Athletes Better. If you’re not 100% satisfied with your gear, exchange or return it for a refund. Anytime. Any reason. Guaranteed.” This dedication has helped the company to gain a loyal following that continues to grow every year. The fact that Under Armour it is constantly developing new, innovative and better products that actually help athletes to perform better is certainly helping their reputation and growing their brand.
Like Amazon.com, Under Armor has seen much higher growth than some of its more established, and bigger, competitors like Nike. Their opportunity for growth is almost as diverse as Amazon as well, including new innovations to their existing products, the potential for expansion in direct-to-consumer (DTC) sales, as well as international sales.
For example, in the first quarter of 2014 Under Armour’s DTC sales increased by more than 30% while at the same time their revenues from international sales increased by almost 80%. The company is also leading the way in the fitness tracking and wearable computing segment of the market with their Armour39 line of clothing and their recent acquisition of Map My Fitness, asset acquisitions that should help them to stay at the forefront of the wearable computing segment in the coming years.
Furthermore, the company continues to grow their partnership with popular professional athletes, professional sports teams and also many college athletic organizations. These affiliations will help the company to grow and expand even more, increase their brand awareness among the general public and raise their prominence among sports fans, athletes and “weekend warriors” all the more.
All of which leads to the conclusion that purchasing Under Armour stock and adding it to your portfolio is a solid investment choice.