Every January, people pledge to become healthier. That’s music to the ears of makers of athletic apparel, which posted a sales increase of 9 percent for 2013 (the latest year for which data are available), compared with 2 percent for the overall apparel market, according to a report by investment banking company Jefferies.
Andrew Burns of investment company D.A. Davidson believes that that type of growth will continue in 2015.
He particularly likes Nike (NYSE: NKE; Price: $96.06) and Under Armour (NYSE: UA; Price: $68.89). “Both are great innovators, have pricing power, brand recognition and dominance in the industry.”
The stocks have a mean analyst recommendation of “buy” or better, according to Zacks Investment Research.