Under Armour - AI Stock Analysis

Analysis generated January 24, 2026

Under Armour is a prominent player in the athletic apparel and footwear industry. The company specializes in creating performance-driven products intended for athletes and fitness enthusiasts. Established in 1996, Under Armour has built a strong brand identity and is known for innovation in fabric technology and product design. Despite facing intense competition from other giants like Nike and Adidas, Under Armour continues to seek growth and expand its product lines and market reach.

Fundamental Analysis

The revenue for the last quarter was $1.33 billion. This includes a 17.57% increase compared to the quarter before it, which is a positive sign of growth. However, when compared to the same quarter last year, the revenue shows a decrease of 4.69%, indicating potential challenges in maintaining year-over-year growth.

Net income for the last quarter was $19 million. This represents a dramatic decrease of 620.29% compared to the previous quarter, suggesting possible financial difficulties or one-time expenditures that significantly impacted profitability. Compared to the same quarter last year, there is a decrease of 111.04%, highlighting further concerns about profitability sustainability.

EBITDA for the last quarter was $76 million, reflecting an increase of 68.87% compared to the prior quarter, signaling some operational efficiencies or cost savings. However, there is a significant decrease of 63.54% compared to the same quarter last year, which may imply longer-term operational challenges.

The current Price-to-Earnings (P/E) ratio is 20.95, which falls within a normal range for the industry and neither indicates a highly speculative stock nor one that is undervalued.

Technical Analysis

Today's stock price for Under Armour is $6.35, which is an increase of 37.45% compared to a month ago. This demonstrates a positive short-term trend. However, the stock price shows a decrease of 24.58% compared to a year ago, which may cause concern about long-term confidence.

The trend is currently bullish, supported by the current SMA10 of 5.98, which is higher than the previous SMA10 of 5.93. This infers a potential upward trend in the price movement. The Relative Strength Index (RSI) is 25, indicating that the stock might be in an oversold condition, which could signal a buying opportunity.

Alternative Data Analysis

Regarding job postings, Under Armour currently has 446 open positions, down by 52% in the last couple of months. This suggests a focus on improving margins or cutting costs and is not typically associated with a growing company. Moreover, the business outlook among employees is relatively low, with only 44% having a positive outlook, which might signify internal challenges or low morale.

On the customer acquisition front, Under Armour's website has seen an estimated 12 million visitors, up by 90% in the last couple of months. This is a positive indicator of increased customer interest and potential revenue growth. Additionally, the daily estimate of 770 users downloading the mobile apps, up by 15%, further supports a bullish trend in customer acquisition.

Customer engagement as indicated by social media data is less encouraging. The number of Instagram followers is stable at 8.3 million but shows a negligible change in the last few months. Meanwhile, the number of Twitter followers stands at 910,000, but the trend is down by 3%. This data suggests a decline in social media engagement, which might affect the brand's overall customer interaction strategy.

According to AltIndex’s AI score, which aggregates multiple data sources, Under Armour has an AI score of 39, categorizing it as a sell signal.

Conclusion

Under Armour presents a mixed bag of signals for investors. While there are positive short-term growth indicators such as increased website traffic, mobile app downloads, and a bullish stock trend, the company is facing long-term challenges. Declining year-over-year revenue, significant decreases in net income, a drop in employee sentiment, and social media engagement raise concerns. The AI score of 39 also leans toward a conservative stance on the stock.

Given the combination of positive short-term trends and concerning long-term data, it may be prudent for investors to proceed with caution. A thorough assessment of market conditions and possible internal improvements will be essential in making an informed decision. Potential investors may want to wait for more stable indicators of long-term growth before committing to Under Armour stock.

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.