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Under Armour has been one of the most explosive growth stories in the consumer sector over the past few years, and the company has delivered mind blowing gains for investors. But Under Armour is now trading near historic highs, and the stock is valued at a considerable premium versus competitors such as Nike and lululemon athletica.. Is it too late to invest in Under Armour, or does the stock still have room to run? Under Armour trades at considerable premium to Nike and Lululemon. The company has a forward P E ratio of nearly 50 times earnings estimates for 2015, while Nike trades at a forward P E of 22.6 and Lululemon carries a forward P E ratio of 22.3 times earnings.
On the other hand, this is not an apples to apples comparison. Nike is an industry leader with unquestionable strength, but the company lacks the same growth potential as Under Armour. With sales of more than $6.4 billion in the last quarter, Nike is more than 10 times as big as Under Armour, so it is naturally harder for Nike to generate the same kind of growth. Nike is still generating sales growth in the range of the high single digits to the low double digits in recent quarters, so the company is doing quite well considering its size. However, Nike is no match for Under Armour and its vertiginous growth rates.nike roshe run.