Under Armour Stock Shines In The Summertime

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If the past is any indication, now is the time of year when Under Armour Inc UA starts to shine. In today’s CNBC Fast Money Final Trade, Steve Grasso pointed out that Under Armour historically averages a 6 percent gain in June and an 11 percent gain in July.
 

Benzinga took a closer look at Under Armour’s summertime trading.

Since the beginning of June 2011, Under Armour has been one of the hottest stocks in the market, delivering an overall return of 339.1 percent versus the 60.9 percent return of the SPDR S&P 500 ETF Trust SPY and the impressive 167.1 percent return of rival Nike Inc NKE.

However, if Under Armour shareholders are particularly fond of the early summer months, there’s good reason. In the past five years, the SPY ETF has averaged a 1.5 percent gain during the months of June and July. Nike has delivered an impressive average gain of 2.5 percent during those two months.

Related Link: The Dow Jones Industrial Average Is 120 Years Old, But It Has Always Had The Same Strengths And Weaknesses

But Under Armour has produced an incredible average two-month gain of 17.6 percent in June and July over the past five years. In fact, 2013 was the only year that Under Armour hasn’t delivered double-digit gains in June and July, and it still produced a strong 8.7 percent return that year.

With the Summer Olympics likely to boost athletic apparel sales this year, Under Armour’ stock could be in for another hot summer in 2016.

Disclosure: the author holds no position in the stocks mentioned.

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