Better Buy: Under Armour vs. Lululemon Athletica

Under Armour (NYSE: UA) (NYSE: UAA) and Lululemon Athletica (NASDAQ: LULU) went in completely opposite directions over the past five years. UA's stock plunged nearly 60% as it struggled to keep pace with Nike (NYSE: NKE) and Adidas (OTC: ADDYY) in the crowded athletic footwear market. Meanwhile, Lululemon's stock skyrocketed nearly 400% as it continued to expand its high-end athleisure apparel business.

Past performance never guarantees future gains, but analysts still expect Lululemon to grow at a much faster rate than UA for the foreseeable future. However, UA also trades at just 14 times forward earnings, which is significantly lower than Lululemon's forward price-to-earnings ratio of 30.

Could UA actually outperform Lululemon this year by drawing in more value-seeking investors in this tough market for growth stocks? Let's examine both companies and their near-term headwinds to find out.

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Source Fool.com