Under Armour - AI Stock Analysis

Analysis generated January 18, 2026

Under Armour, Inc. is an American sports equipment company that manufactures footwear, sports, and casual apparel. Founded in 1996 by Kevin Plank, the company quickly rose to prominence by offering performance apparel designed to keep athletes cool, dry, and light throughout the course of a game, practice, or workout. The company's mission is to make all athletes better through passion, design, and the relentless pursuit of innovation.

Fundamental Analysis

In the latest quarter, Under Armour reported revenue of $1.33 billion. This represents a decrease of 4.83% compared to the previous quarter. However, on a year-over-year basis, revenue increased by 12.65%, indicating positive year-over-year growth. While this growth is promising, the decrease from last quarter should be monitored.

The company reported a net income of $19 million for the same period, a massive decrease of 1,624.64% compared to the previous quarter, signaling significant concern. However, compared to the same quarter last year, net income increased by 93.84%, suggesting positive year-over-year growth. The drastic quarter-over-quarter swing could indicate one-time charges or shifting operational dynamics.

Under Armour's EBITDA for the last quarter was $0, representing a decrease of 100.00% from the previous quarter. However, year over year, EBITDA saw an increase of 100.00% from a previous negative to zero. The absence of EBITDA is a red flag, indicating potential inefficiencies or extraordinary expenses.

The current Price-to-Earnings (P/E) ratio is 20.05, which is within the normal range for the industry, neither particularly high nor low. This indicates that investors are fairly valuing the company's earnings potential but caution is advised given the volatility in other metrics.

Technical Analysis

Today's stock price stands at $5.69. This represents an impressive increase of 30.50% compared to a month ago, suggesting a positive short-term trend. However, compared to a year ago, the stock has decreased by 22.48%, signaling potential long-term concerns. The broader trend remains bearish, which could be worrisome for long-term investors.

The Simple Moving Average over 10 days (SMA10) is $5.55, slightly lower than the previous SMA10 of $5.56. This minor drop suggests potential downward pressure on the stock. Additionally, the Relative Strength Index (RSI) is at 57, indicating a neutral condition without significant overbought or oversold signals.

Alternative Data Analysis

Analyzing job postings and employee sentiment, Under Armour has 449 open positions, which is a 50% decrease in the last couple of months. This suggests the company could be reducing its workforce to improve margins or cutting costs, which isn't a great sign for a growth-oriented company.

The company's business outlook among employees is also troubling, with only 45% of employees having a positive outlook, indicating internal dissatisfaction that could impact future performance.

On a more positive note, Under Armour's website has seen a surge in traffic, with 12 million visitors estimated, up by 90%. Additionally, mobile app downloads have increased by 15%, standing at 770 downloads daily. These metrics suggest a bullish customer acquisition trend.

Customer engagement metrics show the company has 8.3 million followers on Instagram and 910,000 followers on Twitter. While Instagram followers have remained steady, Twitter followers have decreased by 3%, indicating a slight decline in interest.

The AltIndex's AI score, which predicts the company’s stock price based on various metrics, gives Under Armour a score of 42, suggesting a 'hold' signal.

Conclusion and Recommendation

In summary, Under Armour presents a mixed bag of indicators. The company has shown positive year-over-year growth in key financial metric areas like revenue and net income but faces significant quarter-over-quarter challenges. The recent uptick in customer acquisition metrics is encouraging, but declines in employee sentiment and job postings might indicate underlying issues. The technical indicators suggest a bearish trend despite the neutral RSI.

Overall, based on the fundamental, technical, and alternative data analysis, the recommendation is to hold the stock. The mixed signals suggest that Under Armour is at a crucial juncture, and a cautious approach is warranted.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.