Under Armour (UAA) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock ma ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Under Armour (UAA) Analysis - Under Armour (UAA) has shown a four-week price change of 1.7%, indicating growing investor interest [4] - UAA's stock gained 10.4% over the past 12 weeks, with a beta of 1.66, suggesting it moves 66% more than the market [5] - UAA has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - UAA has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.67, meaning investors pay 67 cents for each dollar of sales, indicating a reasonable valuation [7] Group 4: Additional Investment Opportunities - Besides UAA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategies tailored to help investors find winning stock picks [9]

BALTIMORE, Oct. 21, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) plans to release its second quarter fiscal 2025 (ended September 30, 2024) results on November 7, 2024. Following the news release at approximately 6:55 a.m. Eastern Time (ET), Under Armour management will host a conference call at approximately 8:30 a.m. ET to review results.This call will be webcast live and archived at https://about.underarmour.com/investor-relations/financials.About Under Armour, Inc.Under Armour, Inc., headquar ...

Under Armour, Inc. (UAA) shares have gained 27.6% in the past three months, surpassing the industry peers and the broader S&P 500 index's growth of 6.6% and 2.6%, respectively. This impressive performance can be attributed to a combination of factors, including product innovation, a growing direct-to-consumer (DTC) business, international expansion and improved operational efficiency. Image Source: Zacks Investment Research The company's renewed focus on delivering high-quality athletic wear, coupled with a ...

Key Takeaways Under Armour reported that the expenses for its restructuring plan will be much more than first believed. The athletic apparel maker now sees its pre-tax restructuring and related charges in the range of $140 million to $160 million, well above the initial forecast of $70 million to $90 million. The higher charges led Under Armour to cut its full-year outlook. Under Armour (UAA) shares sank in intraday trading Tuesday, a day after the athletic apparel maker warned that the costs of its fiscal ...

Core Insights - Under Armour, Inc. has revised its fiscal 2025 restructuring strategy, increasing pre-tax restructuring expenses from an estimated range of $70-$90 million to $140-$160 million [1][2] Restructuring Strategy - The adjustment includes phasing out a primary distribution center in Rialto, CA, by March 2026, aimed at streamlining operations and refining the supply chain [2] - The restructuring plan is expected to increase short-term costs but aims to position the company for long-term agility and financial strength [2] Financial Impact - Cash-related charges are projected to reach up to $75 million, with $30 million for severance and employee benefits, and $45 million for transformation initiatives [4] - Non-cash charges are anticipated to be nearly $85 million, including $7 million in severance-related costs and $78 million in asset impairments [5] - By the end of Q1 fiscal 2025, Under Armour incurred $34 million in restructuring costs, with $19 million in cash-related charges and $15 million in non-cash expenses [5] Updated Financial Projections - The company now forecasts an operating loss of $220-$240 million, up from the previous estimate of $194-$214 million [6] - Loss per share is now estimated to be between 58 cents and 61 cents, an increase from the earlier range of 53-56 cents [7] - Adjusted operating income, excluding restructuring charges, is projected to be between $140 million and $160 million [6] Long-term Outlook - Despite the immediate financial impact, Under Armour aims to create a more agile and efficient business for sustained profitability and growth in the future [8]

Under Armour Today | --- | --- | --- | |---------------------|-------|-------| | | | | | | | | | UAA | | | | Under Armour | | | | $7.46 | | | | -0.33 (-4.24%) | | | | 52-Week Range $6.17 | | | | ▼ | | | | $9.50 | | | | P/E Ratio 13.82 | | | | Price Target $7.50 | | | | | | | Add to Watchlist Global athletic apparel and footwear brand Under Armour Inc. NYSE: UAA is steadily gaining ground on its turnaround plan. The company had a setback when former CEO Stephanie Linnartz abruptly resigned on April 1, 2024, ...

BALTIMORE, Sept. 9, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) today announced an update to its Fiscal 2025 restructuring plan, including additional initiatives to optimize the company's strategic supply chain capabilities and overall business performance. Previously, the company expected to incur pre-tax restructuring and related charges of approximately $70 million to $90 million in connection with its Fiscal 2025 restructuring plan. Following further evaluation, the company has identified ap ...

Investment Thesis - Under Armour currently receives a sell rating due to an unattractive risk-reward profile, characterized by elevated valuation, negative growth metrics, and increased risk levels [2][6][14] - Nike is presented as a superior investment option, offering stronger financial health, higher growth metrics, and better competitive advantages [2][15] Under Armour's Performance - Over the past five years, Under Armour has underperformed significantly, with a negative performance of -56.57%, compared to the S&P 500's 87.90% and competitors like Nike (-0.86%) and Lululemon Athletica (41.40%) [3] Current Valuation - Under Armour's current P/E Non-GAAP [FWD] Ratio is 35.48, which is 126.64% above the sector median of 15.65, indicating overvaluation [4][10] - The valuation metrics show that Under Armour is more expensive than competitors like Nike (25.77) and Lululemon Athletica (18.43) [10] Growth Outlook - Under Armour exhibits negative revenue growth rates, with a forward revenue growth rate of -3.88% and a negative EPS GAAP growth rate of -23.22%, both significantly below the sector median [5][7] Profitability Metrics - The company has a weak EBIT margin of 3.98%, which is 49.65% below the sector median of 7.90%, and a negative return on common equity of -4.36% compared to the sector median of 11.53% [8][9][12] Comparison with Competitors - Under Armour's growth and profitability metrics are inferior to those of competitors like Nike and Lululemon Athletica, reinforcing the conclusion that its current valuation is too high [11][12] - The company's EBIT margin is significantly lower than Nike's (13.15%) and Lululemon Athletica's (23.02%), indicating a weaker competitive position [12][13] Risk Analysis - Under Armour has a high beta factor of 1.66, indicating greater volatility compared to the broader market and competitors, which further highlights its elevated risk level [13]

Under Armour (UAA) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this sports apparel company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between tren ...