Under Armour (UA) Stock: An Investing Lesson

Yesterday, shares of Under Armour (UA) fell 6.2% after Morgan Stanley analyst Jay Sole noted that Under Armour is reducing the sale price of its women’s footwear and is still expected to lose market share over the course of 2016. This is noteworthy because Under Armour is expected to reduce its women’s footwear pricing by 20% (compared to the industry average of 4%) and still lose market share over the course of 2016. Although the specific metrics have been first articulated by Mr. Sole, the understanding of this general trend has taken the stock from a high of $105.90 in 2015 to $69.96 at the close of yesterday’s trading.

This 30% decline in the price of Under Armour stock, even while earnings continue to grow, illustrate the power of “expectations” in setting the price of stock. It is such a powerful force that Professor Jeremy Siegel’s book “Stocks for the … Read the rest of this article!