Could Under Armour's Stock Be Positioned For Significant Upside Ahead Of Earnings?

Baird added Under Armour Inc (NYSE: UAA) to its positive fresh picks list Monday. The firm called it a catch-up trade and announced it sees $30 upside potential for the stock. 

Jim Cramer said he liked the Under Armour call by Baird, Monday on CNBC's "Squawk On The Street."

Under Armour has underperformed relative to its peer Nike Inc (NYSE: NKE) and it seems "people have forgotten Under Armour," Cramer said.

People tend to believe the stock can't catch up to Nike, but Cramer told CNBC he thinks the general consensus is wrong. 

When a firm puts out a call the day before a company reports earnings, they "better be right," Cramer emphasized. He noted that he thinks the confidence from Baird is "very strong."

Under Armour is scheduled to announce its second-quarter financial results before the market opens tomorrow (Tues. Aug. 3).

Related Link: Understanding Under Armour's Unusual Options Activity

UAA Price Action: Under Armour has traded as high as $26.45 and as low as $9.63 over a 52-week period.

At last check Monday, the stock was up 3.18% at $21.09.

Photo by Mike Mozart from Flickr.