Under Armour Inc (NYSE:UA) used to be a blip on the radar; an underdog among the titans of athletic merchandise like Nike Inc (NYSE:NKE) and Adidas AG (ADR) (OTCMKTS:ADDYY).

But that was then.

Times have changed, and so has UA stock. These days, Under Armour has become the competition with NKE and ADDYY attempting to emulate Under Armour’s moisture-wicking apparel that has made it a household name.

While Under Armour merchandise continues to draw the attention of shoppers, UA stock is captivating the watchful eyes of investors. Shareholders can’t help being enamored with the raging growth story Under Armour has painted over the years.

In 1996, Under Armour was making a meager $17,000 in annual revenue. Fast-forward to fiscal 2014, and Under Armour is reporting over $3 billion in full year net revenue. And the growth rate continues at an impressive clip, with the most recent earnings for Under Armour showing an impressive 32% year-over-year increase in sales. Results for Q4 alone boasted $895 million in revenue on the quarter, up from $683 million from the same period one year prior.

As for fiscal 2015, Under Armour expects annual net revenues of $3.76 billion, a result of their innovative products and advertising efforts — another 25% jump in the top line.

With this kind of growth, expectations for UA stock are running high.

Good thing Under Armour is prepared to deliver!

Bring In the Pros

A string of well known faces such as Tom Brady and Michael Phelps have endorsed the Under Armour brand.

To incorporate a diverse range of athletics, Under Armour is selecting a wide range of professional sports players to represent their company in 2015. From football to tennis, ballet to ski, Under Armour is determined to include consumers’ favorite sports stars under their booming label in order to reach a broader market.

The latest celebrity endorsement for Under Armour is boxing legend, Muhammad Ali. Investors of UA stock applauded this move, anxiously awaiting the impact an Ali line could have on revenues with Under Armour planning to launch a full line of Muhammad Ali merchandise this fall.

Stephen Curry, the NBA all-star whose quick rise to basketball stardom garnered attention from fans, is the face of Under Armour’s largest ever advertising campaign: The Book of Will. Teaming up with award winning actor and musician, Jamie Foxx, Under Armour is set to release a string of commercials starring both icons with Foxx also filling the role of director.

As for his footwear line, “Dark Matter” Curry One launched earlier this month, with Foxx and Curry promoting Curry’s signature shoe through a 70-second advertisement. This strategic move by Under Armour poses increasing competition between UA Curry footwear and Nike’s Michael Jordan shoeline.

Since Ali and Curry are two of the world’s most recognizable athletes, investors of UA stock are hoping to benefit from these big-name celebrity endorsements.

More Reason to Expect Growth

But it’s not just star power that is driving UA stock. Under Armour has some tangible dollars-and-cents news of note to investors lately:

• Last January, Under Armour entered into a 10-year contract with renowned private college, Notre Dame, which took effect after their contract with Adidas ended in June. Rumored to be valued at $90 million, the agreement was said to be the “biggest deal in college history”, according to Bidnessetc. With contracts like this, UA is establishing itself as a leading apparel company for the biggest organizations in sports.
• Elsewhere, Texas Tech University decided to continue their relationship with UA in a six-year contract extension. Kirby Hocutt, athletic director at TTU expressed his appreciation of Under Armour for “all the attention and visibility that Under Armour provided” their college athletics program over the years. Capitalizing on the popularity of college sports is helping to position Under Armour for long-term growth and popularity in the athletic world with this kind of advertising — and the fact that UA is retaining old deals as well as forging new ones in a good sign.
• In 2013, Under Armour went digital by acquiring MapMyFitness, a mobile and online platform which boasts over 30 million users. With Under Armour focused on expanding its presence through diverse outlets, the $560 million acquisition of Edomondo ($85 million) and MyFitnessPal ($475 million) came as no surprise. The MapMyFitness Community is now the largest in digital health and fitness with 120 million loyal users. According to Steve Symington at The Motley Fool, Under Armour CEO, Kevin Plank said, “[…] this investment would enable us to better anticipate our consumers’ needs, drive more informed purchase decisions, and authentically build brand loyalty by helping our consumers lead a healthy life.” This shows how UA stock is moving beyond simple apparel and into high-tech (and hopefully high margin) fitness gear.

The competition has always been fierce in the sporting industry, but it’s safe to say that Under Armour — once the underdog of apparel sports — has become Nike’s biggest competition.

With UA stock positioning itself for growth, investors should buy and hold UA stock as their growth story continues to unfold.

As of this writing, Anna Rider did not hold a position in any of the aforementioned securities.