Summary:

  • US500 breaks above 2600 to new all-time high
  • Wall Street to reopen after closure for Thanksgiving
  • Retailers in focus on Black Friday

The US stock market rally shows little sign of abating with the US500 rising above 2600 this morning to post a new all-time high. Bulls will be looking to push price higher heading into the weekend with Wall Street reopening this afternoon following Thursday’s closure for the Thanksgiving bank holiday.  

After 2 weeks of lower closes the US500 is looking to post an impressive gain this time out and extend the rally after a bit of a pause. The market is currently trading close to its weekly high and after a dip lower at the beginning of the week the bulls have firmly taken back control of the tape. 

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 The US500 is looking set to post a strong weekly gain after 2 weeks of red closes. Source: xStation

With today being Black Friday retailers are obviously in focus with early indications suggesting the the sector will enjoy a bumper day of sales. One stock in particular that could be worth following going forward is Under Armour (UA.US on xStation). It’s been a forgettable year for investors in Under Armour with the stock losing more than half of its value during 2017. 

The stock was a darling of the market for several years with an incredible run of 26 straight quarters that saw sales increase by at least 20%. The share price rallied from around the mid-teens to as high as 106 towards the end of 2015 before crashing back down to earth with a bump. Whilst it should be noted that the large decline seen in April 2016 was due to a stock split, the shares remain heavily subdued compared to recent years. 

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 Under Armour stock has fallen sharply this year and currently trades not far from its lows. Source: xStation

One word of warning for investors may be that the stock still doesn’t look that cheap compared to its peers. The company has a P/E multiple of 41, which is comparable to Nike (which has risen 16% this year), and a forward P/E ratio of 25.  

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 The stock remains in a downtrend that has been in place throughout the year. Lows of 10.42 are a possible support level to keep an eye on. Source: xStation