3 Stocks To Consider Selling in 2011 (UA, NKE, AIG, COH)

Some stocks have performed beautifully during the last year, so well in fact, it may be high time to seize the profits and run. Consider Under Armour UA, a stock which has increased from $28.90 to $55.02 in one year, almost doubling in price. Under Armour also has an incredibly high P/E ratio of 46.54 which suggests it may now be overvalued. Under Armour is roughly $5 short of its 52-week high and well above its 200 day moving average of 45.31. The short ratio is 7.6 which may place downward pressure on the stock price. To compare, competitor Nike NKE, outperformed the market as well this year, increasing in price over 20%. Nevertheless, Nike boasts a much more modest P/E ratio of 19.94 and a short ratio of 1.7. Nike is currently trading at $82.56, roughly $10 shy of its 52-week high and about $4 above the 200-day moving average. Of further interest is American International Group AIG, which sold one year ago for $26.50, and is selling for $57.19 today. In addition to this 100% return, the forward P/E for AIG is 73.32 suggesting it may be extremely overvalued. AIG is $5 below the 52-week high, but $16 above the 200-day moving average. The short ratio is currently at 2.3, suggesting that investor sentiment may still be bullish, though the other statistics suggest it may not last long. Furthermore, according to Reuters, share prices are expected to fall when stock warrants begin trading next week. Coach COH was selling for $37.50 a year ago and $53.99 today, a nearly 44% return. The P/E for Coach is 21.39 with a short ratio of 2.7. Coach is also selling below its 52-week high of $58.55 and above the 200-day moving average of $45.38. Though Coach may still be a strong investment to hold on to, a second year of yielding a 44% return is probably unlikely given that many strong post-recession market rebounds have already occurred. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that your own due diligence and consult a certified financial professional for personalized advice about your financial situation.