Under Armour Stock Analysis

Summary

• Under Armour has experienced massive growth over the last five years, achieving over 20% revenue growth for 20 straight quarters.
• The stock price has plateaued since the most recent earnings report, and investors should take the chance to initiate a long-term position in the stock.
• The next earnings report will act as a catalyst for this stock, as the company’s revenue growth, profitability, and guidance will improve.
• I Know First algorithm is bullish on Under Armour in the long-term.

Under Armour, Inc. is an American sports clothing and footwear company that recently became the second largest athletic retailer on the planet by sales. The fall in its stock price since the last earnings report offers a solid opportunity for investors to buy this rapid growth company. The high valuation should be embraced, as the company’s 30% annualized revenue growth quarter after quarter should continue to occur over the next year. At that rate, the current price will be a bargain to long-term investors who have the foresight to buy the stock now.

Under Armour has shown the ability to identify and endorse up-and-coming athletes, including Stephen Curry, Jordan Spieth, Clayton Kershaw, Bryce Harper, and Memphis Depay. These endorsers will allow the company to grow its revenue in multiple sports as the company continues to focus on leisurely athletic footwear and apparel, while also continuing to focus on its technologically advanced athletic equipment. At this price level, the I Know First algorithm is bullish on Under Armour for the 3-month and 1-year time horizons, with a bullish algorithmic forecast over that time.

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