Jim Cramer Says You Should Stay Away from These 7 Stocks

2. Under Armour Inc Class A (NYSE:UAA)

Number of Hedge Fund Investors: 33

Jim Cramer recently said in a program that he’s a “huge supporter” of Kevin Plank, Under Armour Inc Class A’s (NYSE:UAA) founder and CEO.  However, he said he’s not a supporter of the stock. That’s because, according to Cramer, the competition in the athletic apparel industry is very high. Cramer said he’s sure if Kevin Plank goes to another industry he’d be “crushing it” but in this industry you have to compete with major players like Nike and New Balance.

“These are just serious competitors and you’ve got to be on your game every second.”

Wall Street analysts are also questioning Under Armour Inc Class A’s (NYSE:UAA) future following downbeat fiscal Q4 results. J.P. Morgan analyst Matthew recently said that increasing competition in the industry and Under Armour Inc Class A’s (NYSE:UAA) 18-month reset plan would leave it lagging behind peers, as he downgraded the stock to $6

“While we see secular health/wellness and casualization tailwinds providing Sportswear sector insulation, we see Under Armour lagging peers in terms of innovation, profitability, and DTC infrastructure,” the analyst said.

Under Armour Inc Class A (NYSE:UAA) shares are down about 20% so far this year.

Of the 919 hedge funds tracked by Insider Monkey, 33 funds reported owning stakes in Under Armour Inc Class A (NYSE:UAA). The biggest stake in Under Armour Inc Class A (NYSE:UAA) is owned by Anand Parekh’s Alyeska Investment Group which owns a $44 million stake in Under Armour Inc Class A (NYSE:UAA).