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Sportswear stocks are stretching to give big gains at the start of the year.
Rival Under Armor, which has just released fourth-quarter profit and sales above badysts' expectations, struggles to stand out above its resistance level. Its shares rose 2.4% in the premarket market on Tuesday, to 21.28 USD, after the victory.
It is "still below its November level of about $ 22, so maybe the market may progress to AU, but I'll stick to what's already starting to burst, namely Lululemon" Wald said Monday.
Under Armor has dropped 9% in the last three months. This is an increase of 6% on the $ 22, the level under which it had fallen in early December.
Michael Bapis, Managing Director of Vios Advisors at Rockefeller Capital Management, is optimistic for the group as a whole.
"It's a high-growth area with a high P / E ratio," Bapis told "Trading Nation" on Monday. "It went from workout gear, from sportswear to casual wear, but now everyone wears these clothes everywhere.There is brand loyalty with Lulu, with Nike, even with Under Armor. let's take advantage of the growing space. "
Athleisure stocks are trading at a high valuation relative to the S & P 500. Although the index has a multiple of 16 times the futures earnings, Nike is trading at 28 times, Lululmeon at 34 times and Under Armor at 61 times the term profit.
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