Stock Price & Analysis

Analysis and Insights

Technical Analysis:

Columbia Sportswear Co. (COLM) is currently trading at $77.475 as of March 25, 2025. The stock has shown a slight decline in the regular market session, with a 0.63% drop. The price action indicates a bearish trend, with the Relative Strength Index (RSI) at 39.72, suggesting the stock is in oversold territory. The MACD is also negative, further confirming bearish momentum.

Valuation Analysis:

The stock has surpassed the average analyst target price of $81.00, trading at $82.59, prompting analysts to consider either downgrading their valuation or raising their target prices based on the company's performance. The average target price reflects a range of analyst opinions, with targets varying from $60.00 to $100.00, indicating differing perspectives on the stock's future potential.

Analyst Sentiment:

Analysts have mixed opinions on COLM. While some are impressed with the company's innovations, such as the new "polar bear" technology and improvements in inventory management, others suggest that the stock might be overvalued given the current market conditions. Jim Cramer has praised the company's focus on innovation, but the stock has shown a 10% increase since his positive commentary, which might indicate that the positive sentiment is already priced in.

Event Impact Assessment:

The company has been adapting to new tariffs by modifying product designs to qualify for lower tariff categories. This strategy has helped mitigate costs, but the administration's stance on tariffs might lead to further challenges. The stock has shown resilience, but the current technical indicators and mixed analyst sentiments suggest caution.

Conclusion:

Given the current technical indicators and mixed analyst sentiments, it may be prudent to hold or wait for further positive developments before considering a purchase. The stock's valuation and recent performance suggest that while there is potential for growth, the risks associated with the current market conditions and tariff uncertainties might outweigh the benefits.

Columbia Sportswear (COLM) is predicted to reach a price of $85.00 by year-end 2025, driven by strong product innovation and improving profitability. The stock is currently trading near its Fibonacci support level, suggesting potential upside. However, if market conditions deteriorate, the price could stabilize around $75.00.

The S1 support level for COLM Stock is $74.81 ,The R1 resistant level for COLM Stock is $78.85.

As of the end of day on 2025-04-01, the price of COLM Stock was $76.745.

The target price for COLM Stock according to analyst rating is 83.00, with the highest price target at 100.00 and the lowest at 60.00. Analysts have a Hold rating on COLM Stock overall.

The market cap of COLM is $4.2B.

Analysis and Insights

To determine whether Columbia Sportswear Co. (COLM) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

COLM's current valuation metrics suggest a premium relative to industry averages:

• PE Ratio: 23.25 (Q3 2024) and 21.99 (Q4 2024), higher than the industry average of 18-20.
• EV/EBITDA: 12.95 (Q3 2024) and 12.2 (Q4 2024), indicating a rich valuation compared to peers.
• PS Ratio: 1.48 (Q3 2024) and 1.46 (Q4 2024), above the 1.0 threshold for consumer discretionary stocks.
• PB Ratio: 2.66 (Q3 2024) and 2.65 (Q4 2024), higher than the sector average of 2.0-2.5.

These metrics collectively suggest that COLM may be overvalued.

Market Sentiment and Analyst Insights:

• COLM's stock has surpassed the average analyst 12-month target price of $81.00, trading at $82.59, prompting analysts to consider valuation adjustments.
• While the company has shown resilience through product innovation and tariff engineering strategies, the stock's current price reflects high expectations for future growth.

Conclusion:

Based on the elevated valuation metrics and the stock price surpassing analyst targets, COLM appears overvalued. Investors should consider whether the company's growth prospects justify the current price.

Columbia Sportswear Company is a multi-brand in outdoor, active and lifestyle products, including apparel, footwear, accessories, and equipment. The Company manages its product line in two categories: apparel, accessories, and equipment products and footwear products. It provides products through four brands: Columbia, SOREL, Mountain Hardwear, and prAna. Columbia brand offers outdoor apparel, footwear, accessories and equipment products suited for hiking, trail running, snow, and fishing and hunting activities, as well as everyday outdoor activities. SOREL brand offers footwear. Mountain Hardwear brand designs essential, premium apparel, accessories and equipment products for climbers, mountaineers, skiers, snowboarders, and trail athletes. prAna brand offers apparel, accessories and equipment products. The Company sells its products in approximately 100 countries and operates in four segments: United States, Latin America and Asia Pacific, Europe, Middle East and Africa, and Canada.

The price prediction for COLM stock by 2030 is $120 per share. This forecast is based on the company's strong innovation pipeline, including its "polar bear" technology, and its ability to navigate global market expansion. Analysts expect continued growth driven by these factors.

COLM has a total of 10070 employees.