Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.4% stock price decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 27.24, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, leading to a 12.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].
Down -18.44% in 4 Weeks, Here's Why You Should You Buy the Dip in Under Armour (UAA)