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2 New SA Articles: Is Under Armour Worth The Risk? Has Honeywell Weathered The Storm?

Under Armour Is Worth The Risk

Summary
  • Footwear business is becoming increasingly important for UA.
  • Footwear makes UA less vulnerable to setbacks in its apparel business but could have some negative implications.
  • UA has an operating profit yield of roughly 15%.
  • UA’s financial leverage has risen over the years.
Under Armour (NYSE:UA) is rapidly expanding its reputation in the apparel manufacturing industry and at the moment there is a lot of excitement surrounding the company's stock for various reasons.


In the past 5 years, UA's stock performance has been scintillating. A comparison of cumulative total return on UA common stock versus the cumulative total return of the S&P 500 Index and S&P 500 Apparel, Accessories and Luxury Goods Index from 2010 to 2015 can be seen in the chart below. So if you'd invested $100 in UA on December 31 (2010), your money would have grown to roughly $600 in five years. If, however you had chosen the S&P 500 Apparel, Accessories and Luxury Goods Index instead of UA, your $100 would have only grown to ~$123, which happens to be less than one-fourth of $600... READ MORE



Honeywell Has Weathered The Storm And Has More Upside

Summary
  • Honeywell’s business model is strong and the company’s strategies have allowed it to consistently sustain sales growth for years.
  • Its focus on targeting high-margin products while expanding its footprint through acquisitions is working.
  • Its share price has upside: the company is headed to post double-digit growth in earnings, despite current macroeconomic headwinds.
Honeywell International Inc (NYSE:HON) has suffered only a barely perceptible impact from recent macroeconomic headwinds. Market uncertainty and tumbling oil prices have barely made a dent in its overall performance over the last couple of quarters. Thankfully, the company has a highly diversified business model with very low exposure to the depressed energy sector.

The company's stock price has remained resilient against the headwinds of falling oil prices and an uncertain macroeconomic environment. This success is due to a strong product portfolio and a dedicated focus on innovation... READ MORE

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