Under Armour, Over Weight?

There are some interesting comments coming from Under Armour

CEO Kevin Plank regarding the company's potential. If you believe him, you may want to get long the stock.

from Michele Steele, who is Bloomberg's sports business reporter, said that Plank wants to get the company to $2 billion in sales in the next three years, which would be a tremendous achievement. The company first surpassed $1 billion in sales last year, and it took the company 15 years to achieve this goal. The stock has certainly reflected the company's meteoric growth, having doubled in price in the past 12 months. Shares are up 2% today on the comments out of Plank, and if investors believe Plank, there is more room for upside from these levels. The $3+ billion market cap company, certainly is not cheap, trading at just under 30 times forward earnings, but if the company can grow its revenues 100% in 3 years, then the bumps and bruises the company is likely to have along the way will almost certainly be worth it. Under Armour has been expanding its brand from not only clothing, to footwear, jerseys, and accessories. One of the company's top endorsers, Cam Newton, went #1 overall in the 2011 NFL Draft. Newton is a high profile athlete, having won the Heisman Trophy, and his success on the field should help Under Armour's success at the cash register. Under Armour also counts players like Ray Lewis, and Tom Brady among its roster. The company was founded at the University of Maryland, and CEO Plank, 38, was a former football player at the school. If Plank and the rest of his team can generate $2 billion in sales over the next three years, then this means that market share is being taken away from the likes of Adidas, Reebok, and the global behemoth, Nike

. Under Armour is growing its revenues 36% year over year, and its earnings an astounding 69% year over year. The company has more than $110 million in cash in the bank, and negligible debt, at just $13 million, so there is no reason for the company to not continue to keep growing at historic rates, at least for the next couple of years. There is little chance the company is acquired by a major company, like a Nike or an Adidas, but given its expanding presence, Under Armour is definitely seen as a threat to these companies. Strap on your cleats, tighten up your gloves, and perhaps Under Armour shares will lead your portfolio on a victory march. Or at least you'll be in better shape than you were before.