Under Armour (UA)
Apple (AAPL) was the big investment story for early 2012 when iPhones and iPads were all the rage, and between 2009 and 2011, high-end workout-wear maker LuleLemon (LULU) saw its stock soar side-by-side with the popularity of it clothing.
Sports apparel name Under Armour (UA) had its day in the sun in 2009, and the red hot rally was renewed in 2013; shares of UA stock are up 69% this year so far. But here’s the problem: At a trailing P/E of 60.0 and a projected P/E of 46.0, it’s unlikely the market’s going to keep bidding up UA stock when earnings growth is expected to slow from 31% this year to 24% next year.
Sell UA stock before it goes out of style.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.