It was one of the best trading days for athletic apparel retailer Under Armour on Tuesday. In fact the stock hasn’t had such a good day since January of 2016.
The problem though is that one analyst thinks these gains don’t mean much.
According to Mark Tepper, the president of Strategic Wealth Partners, “In Vegas, this is what they call a sucker bet.”
He told CNBC’s “Trading Nation” on Tuesday that his firm doesn’t “see very many positives” and that “there’s a lot of negatives.”
While Under Armour was soaring 17% on good earnings, Tepper says the earnings were just “less bad” rather than good.
He also remarked, “The company also has quite a bit of debt and their interest costs are growing quickly.
At a forward P/E rate of 68, we wouldn’t touch it with a 10-foot pole.”
Disclaimer: We have no position in Under Armour Inc Class A (NYSE: UAA) and have not been compensated for this article.