Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Under Armour Inc., (SYMBOL: UA) and the headline says:
First Quarter: Another Sales Beat, Though Outlook Tepid (Morgan Stanley)
Rapidly growing sports apparel company Under Armour Incorporated reported first quarter sales up 23%, slightly above Wall Street expectations. Net income decreased 47% due to planned marketing expenditures.
Morgan Stanley Research reports that sales growth is being driven by “new product innovations, new retail programs, and global expansion.” However, Morgan Stanley is concerned about stagnant margins keeping the share price in check.
Under Armour’s earnings per share are expected to grow 20 – 26% per year for the next three years. The PE is 38, in a 7-year range of 13-70. The stock has been trading between $44 ½ and $60 for 14 months.
Our Ransom Note trendline says: BUY UNDER ARMOUR BELOW $52
Stock number two is:
Amazon.com Inc., (SYMBOL: AMZN) and the headline says: