Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.6% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 24.76, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, with a 12.5% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation in the near term [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 stock's potential for a turnaround [7].
After Plunging -18.55% in 4 Weeks, Here's Why the Trend Might Reverse for Under Armour (UAA)