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Image These red flags all indicate that Under Armour isn't a great buy at current prices. Instead, investors should check out two of UA's more reasonably priced peers: Nike and VF Corp ( NYSE:VFC ). Like UA, Nike has been weighed down by slowing sales growth and the bankruptcy of Sports Authority. Sales rose 5.9% annually to $8.24 billion lastquarter.That represented a slowdown from 7.6% growth in the previous quarter, but compared favorably to 4.9% growth in the prior year quarter. On a constant currency basis, Nike brand revenues rose 8% to $7.73 million, while Converse brand revenues rose 18% to $513 million. Robust overseas sales offset weaker demand in the North American market. Worldwide futures orders rose just 11% on a constant currency basis, missing expectations for 13% growth. Gross margin contracted 30 basis points annually to 45.9% due to higher product costs, the clearing of excess North American inventory, and unfavorable foreign exchange rates. However, Nike's gross margin decline wasn't as steep as UA's 70 basis point decline to 47.7% last quarter. Nike's inventory rose 12%, but that was also better than UA's 30% jump in inventory last quarter.

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