Cramer: Here's What's Wrong With Under Armour

 | May 16, 2017 | 5:46 AM EDT
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Stock quotes in this article:

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Some stocks just don't get much respect.

Take Under Armour (UAA) . When Under Armour last reported, it was widely hailed as the bottom. There was ample evidence that the stock had become overly hated, that there were way too many bears. There were more sells than buys.

Well, it caught some upgrades, but in the end, it didn't matter. The stock's right back to where it was.

Then I figured, when Stephen Curry started to dominate again maybe things would pick up. I figured it would stir some buyers.

Nothing.

Finally, last week Kohl's (KSS) reported a half-decent quarter and praised Under Armour as a major reason why sales came back during the quarter. It was the most bullish testimonial for UAA imaginable, and I thought for sure it would have an impact.

But it was like a tree falling in the woods. Some of that was Kohl's saying that Nike (NKE) is still hot. And we know that Adidas (ADDYY) is a strong story with endless legs.

Still, it makes you wonder if something else is out there. Now we will hear Footlocker (FL) Friday and perhaps the story there is a slowdown, although I doubt it.

Perhaps this underperformance is just a testament to how hard it is for anything but tech to come bounce back to life. This one just sticks out like sore thumb. I know it is still expensive. My best theory about why it might not be rallying is that Macy's (M) and JC Penney (JCP) have to close a ton of stores, which means a lot of UAA merchandise will be floating around in the system.

Maybe it will take a concerted effort by Action Alerts PLUS charity portfolio holding TJ Maxx (TJX) -- where I think a lot of their wares will end up -- to clean out the inventories before this thing can stage a move higher.

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