Why invest in Under Armour? (2024)

Why invest in Under Armour?

Valuation metrics show that Under Armour, Inc. may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of UAA, demonstrate its potential to perform inline with the market.

Why should I buy Under Armour stock?

Given that Under Armour's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Is under armor a good investment?

Analysts expect adjusted earnings to reach $0.493 per share for the current fiscal year. Under Armour Inc does not currently pay a dividend. The outlook for the apparel, accessories, and luxury goods is neutral. Analysts forecast a major shift in consumer spending in the latter half of 2021.

What is so special about Under Armour?

From the brand that first revolutionized the athletic wear market in 1996 by introducing sweat-wicking fabric, Under Armour is once again changing the performance apparel game by introducing responsive textiles and gear, scientifically designed to enhance performance.

Is Under Armour in good financial health?

Overall, we are quite pleased with Under Armour's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.

What is the competitive advantage of Under Armour?

UA's innovation in the materials it uses helps it avoid the disadvantage of buying the same materials at a lower volume and higher cost than its competitors. The company has been able to establish its brand through endorsement deals and stave off the threat of substitute products.

What is the future of Under Armour stock?

The average twelve-month price prediction for Under Armour is $10.07 with a high price target of $15.00 and a low price target of $8.00. Learn more on UAA's analyst rating history.

Why is Under Armour stock so cheap?

Under Armour (NYSE: UA), a sports equipment company that manufactures footwear, sports, and casual apparel, has declined by 24% year-to-date and currently stands at around $7. The company's stock traded lower as the company's growth slowed down due to a heavily promotional market in the North American retail segment.

Does Under Armour have a good reputation?

Newsweek Recognizes Under Armour on Most Trustworthy Companies 2022 List. Trust builds great athletes, and trust runs deep at Under Armour.

Is Under Armour profitable?

Under Armour president and CEO Stephanie Linnartz says the company's profitability in Q2 (the period ending 30 September 2023) “exceeded” expectations. Gross profit was $752m in the second quarter, which was 48% of net revenues. This is compared to the same period in 2022 when it was $713.8m and 45.4% of net revenues.

What makes Under Armour different from its competitors?

Here are some key factors that distinguish Under Armour from its competitors: Performance-Driven Innovation: Under Armour has built its reputation on being a performance-driven brand. The company invests heavily in research and development to create cutting-edge sportswear that enhances athletes' performance.

What do people like about Under Armour?

Under Armour's brand was founded on one thing: Making an exceptional men's base layer shirt with performance features like moisture-wicking, at a time when that didn't exist. Since then, the brand has evolved into offering athletic wear and shoes for women, men, and kids, in many sport categories, and now face masks.

What is Under Armour's unique selling point?

Put innovation over image

Under Armour has embedded innovation at every point along its supply chain and is constantly looking for new problems to solve, and innovative fabrics and designs that help people overcome obstacles and enhance performance.

How is Under Armour doing financially?

Wholesale revenue increased 6 percent to $3.5 billion , and direct-to-consumer revenue decreased 3 percent to $2.3 billion due to a 6 percent decline in owned and operated store revenue partially offset by a 3 percent increase in eCommerce revenue, which represented 42 percent of the total direct-to-consumer business ...

Who makes more money under armor or Nike?

However, Nike is much bigger than Under Armour. Nike's total revenue in 2018 stood at $39 billion - almost 7.5 times more than Under Armour's $5.2 billion.

Who is Under Armour's target market?

Over the years the demographic segmentation for Under Armour has evolved from focusing on male collegiate athletes between the ages of 17 and 23 to include older men, women, and children. Under Armour uses high quality products and the price that comes with that is geared towards consumers who are financially stable.

How did Under Armour become so successful?

Success Comes Calling

Having delivered on the keep-you-cool promise with HeatGear, Under Armour went a step further by introducing ColdGear in 1997 designed to keep athletes warm, dry, and light in cold conditions. The AllSeasonGear soon followed, offering athletes a comfy and high-performance t-shirt for all seasons.

What does Under Armour sell the most of?

Will Under Armour recover?

Going by our Under Armour's Valuation, with an earnings per share estimate of around 52 cents and a P/E multiple of 15.6x in fiscal 2024, this translates into a price of $8, which is almost 20% higher than the current market price. We forecast Under Armour's Revenues to be $6.1 billion for fiscal 2024, up 3% y-o-y.

Is Under Armour growing?

Global revenue growth of Under Armour 2009-2022

In the fiscal year ended March 31, 2022, Under Armour's net revenue increased by 3.1 percent. Under Armour is an American sporting goods manufacturer, based in Baltimore, Maryland.

Who owns the most Under Armour stock?

Why is Under Armour stock struggling?

Under Armour continues to struggle with declining sales, particularly in its key North American market. The challenging retail environment in the US, with increased promotional strategies and high inventory levels, has contributed to the decline.

Is Under Armour declining?

Athletic brands are struggling to find their footing in 2023 — and now one of the biggest American companies is adjusting its outlook after falling short of expectations. Under Armour saw revenue decline by 1% in its most recent fiscal quarter with a 2% drop in North America, its largest market.

Is Under Armour in debt?

Total debt on the balance sheet as of September 2023 : $1.47 B. According to Under Armour 's latest financial reports the company's total debt is $1.47 B.

Is Adidas or Under Armour more popular?

adidas's brand is ranked #58 in the list of Global Top 100 Brands, as rated by customers of adidas. Their current market cap is $5.62B. Under Armour's brand is ranked #231 in the list of Global Top 1000 Brands, as rated by customers of Under Armour. Their current market cap is $9.34B.