Under Armour: Stay Long, The Story Is Still Intact

Summary:

- Under Armour reported Q2 2018 results that beat the top- and bottom-line estimates. Management also raised their full-year 2018 guidance.

- It is important to remember that the company's revenue growth profile should be the focus through at least the end of 2018.

- Under Armour's long-term story is still intact so I plan to stay long the stock.

Under Armour ($UA)($UAA) is (and has been) a "show me" stock so investors should be encouraged about the fact that the company has reported impressive operating results so far in 2018. To this point, Under Armour recently reported strong Q2 2018 results that beat both the top- and bottom-line estimates. Additionally, the management team raised their full-year 2018 guidance. It was a classic beat and raise. As a direct result, the stock finished the trading day up ~4%, which brings the stock’s YTD performance to an outstanding 42%.

While UAA shareholders have enjoyed a nice start to 2018, Under Armour’s long-term story is still intact so I believe that the stock still has room to run.