Earnings Estimates Moving Higher for Under Armour (UAA): Time to Buy?

Under Armour (UAA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this sports apparel company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.For Under Armour, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.Current-Quarter Estimate RevisionsThe earnings estimate of $0.18 per share for the current quarter represents a change of -25% from the number reported a year ago.The Zacks Consensus Estimate for Under Armour has increased 25.59% over the last 30 days, as seven estimates have gone higher while one has gone lower.Current-Year Estimate RevisionsThe company is expected to earn $0.22 per share for the full year, which represents a change of -59.26% from the prior-year number.In terms of estimate revisions, the trend for the current year also appears quite encouraging for Under Armour. Over the past month, 10 estimates have moved higher compared to one negative revision, helping the consensus estimate increase 11.3%.Favorable Zacks RankThanks to promising estimate revisions, Under Armour currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineWhile strong estimate revisions for Under Armour have attracted decent investments and pushed the stock 20.3% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.Free Report – 3 Stocks Sneaking Into Hydrogen EnergyDemand for clean hydrogen energy is projected to reach $500 billion by 2030 and grow 5-FOLD by 2050. No guarantees, but three companies are quietly getting the jump on their competition.Zacks Investment Research is temporarily offering an urgent Special Report naming and explaining these emerging powerhouses primed to boom. Click below for Hydrogen Energy: 3 Industrial Giants to Ride the Next Renewable Energy Wave.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Under Armour, Inc. (UAA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks