Is Under Armour Inc (UA) Destined for Greatness?

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While the company has been an undisputed leader in “compression-wear,” a segment it all but invented, Under Armour continues to expand its horizons in areas where it has been either struggling or non-existent. Under Armour has targeted amateur baseball and football players (who certainly buy more shoes than the small group of elite professionals) with a line of sport-specific cleats.

The company has also signed a marketing contract with Tottenham Hotspur, which will boost Under Armour’s sales as the rising soccer (or football, for true fans) team continues to win hearts worldwide. A recent agreement with Chilean soccer team Colo-Colo also helps the brand penetrate Latin America. Nearly all of the company’s sales are in the United States, so smart international branding opportunities must continue apace. At present, Under Armour Inc (NYSE:UA)’s international sales account for only 6% of the company’s revenue, but overseas buyers are expected to comprise about 12% of revenue by 2016.

Putting the pieces together
Today, Under Armour has some of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Under Armour Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Under Armour.

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