Under Armour Stock Forecast: Curry Leads the Way for UAA


This article was written by Jason Schwartz, a Financial Analyst at I Know First

Under Armour Stock Forecast 

“We remain unequivocally committed to our growth strategy and are laser-focused on delivering sustainable, profitable growth for our shareholders.” Kevin Plank


  • Partnered with both Kohl’s and DSW
  • Entered into a 10-year partnership with the MLB
  • Focus now on footwear, international, and direct-to-consumer businesses
  • 200 million users on their connected fitness platform
  • Steph Curry is Once Again a World Champion

under armour stock analysis


Kevin Plank has established himself as one of the most brilliant and savvy entrepreneurs of our lifetime. He transformed Under Armour (UAA) into the third-largest athletic brand in the world. He understands that Under Armour faces fierce competition from Nike and Adidas. In order to remain competitive, Under Armour must become more innovative in order to differentiate themselves.

Compelling Partnerships

Recently, Under Armour has entered into various partnerships that should prove to be advantageous in the long run. The company has partnered with both The Kohl’s Corporation and DSW, Inc. Critics insist that selling a premium brand such as Under Armour in a discount department store would be a mistake. However, the chance to sell Under Armour apparel in both Kohl’s and DSW represents a sizable customer acquisition opportunity for Under Armour. Executives from both Kohl’s and Under Armour believe that this partnership could allow Kohl’s to become an active and wellness retailer.

This past December, Under Armour and Major League Baseball entered into a 10-year partnership. The deal makes Under Armour the on-field outfitter of the MLB beginning in 2019. The deal represents Under Armour’s first-ever deal with a major professional sports league in the United States. More good news for Under Armour, the MLB ended its most recent season with stellar ratings, as millions of people tuned in to watch the World Series. The partnership proves that Under Armour deserves a seat at the table alongside Nike and Adidas. Additionally, Under Armour has recently become the official outfitter of both UCLA and UC Berkeley.

These partnerships should enable Under Armour to better compete against the competition.

Building The Foundation

Kevin Plank is committed to building and investing in the foundation for Under Armour’s fastest growing businesses-footwear, international, and direct-to-consumer.

Plank hopes that customized footwear will give Under Armour the competitive advantage that it has been seeking. By uploading their own images and selecting prints and colors, customers are able to customize athletic shoes using Under Armour’s new platform. It has long been expected that Under Armour would unveil such a platform since Nike has already released one. Although footwear already accounts for 30 percent of Under Armour’s valuation, this could prove to be a profitable venture for the company for a few reasons. One, demand for premium customized footwear is on the rise. Two, 25% of all the footwear that is purchased online is customized.

Under Armour prides itself on being a globally diverse brand. The company has already proven that it can be successful in countries such as China and the United Kingdom. It hopes to make inroads in countries such as South Korea and Argentina. In 2016, Under Armour’s international business grew 63% and accounted for 15% in global revenue. As the world becomes increasingly more globalized, it is expected that Under Armour will continue to grow overseas.

In 2016, direct-to-consumer business represented 31% of total business. In the future, expect for Under Armour to focus their efforts on their direct-to-consumer business for the following reasons. For starters, several of Under Armour’s major retail partners have went out of business. Secondly, Dick’s Sporting Goods Inc has started selling its own clothing line, similar to that offered by Under Armour. Under Armour has experienced a 27% revenue growth driven by more than 240 brick-and-mortar retailers and 30 E-Commerce sites globally.

Importance of Technology

Under Armour recognizes that the role played by technology will only become increasingly more important in our society. Over the past few years, the company has invested hundreds of millions into fitness apps and wearable devices. The company has digitally engaged nearly 200 million users on their connected fitness platform. Insight provided by the connected fitness platform will enable Under Armour to better anticipate the needs and wants of their customers.


There are plenty of reasons to be optimistic about the future of Under Armour whether it be the formation of lucrative partnerships, investment in their fastest-growing businesses, or a commitment to new technologies. Under Armour is endorsed by Steph Curry, point guard for the Golden State Warriors. Curry is one of the most famous athletes in the world and is arguably the face of the National Basketball Association (NBA). For the second time in three straight years, Steph Curry led The Golden State Warriors to a world championship. Since the start of the NBA finals, Under Armour stock is up more than 20 percent. Curry’s newest sneaker is expected to be released in the fall. The new sneaker has been widely praised and is considered to be a noticeable improvement from his last sneaker. All good news for Under Armour. Under Armour has reported better than anticipated results for Q1 2017 and shares of Under Armour have gained 14% in June so far. My positive outlook on Under Armour aligns with I Know First forecast that was sent to subscribers on June 13, 2017.



I Know First Algorithm Bullish Forecast For UAA

Past I Know First Forecast Successes With UAA

In such as the one dated on May 18, 2014, the algorithm accurately forecast a signal for Under Armour. In a one year time span, the stock rose impressively by 76.59%, beating the S&P 500 return of 13.38%. The market premium calculates to an astounding 63.21%.

This bullish forecast was sent to I Know First subscribers on May 18, 2014.

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm, allowing the user to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above in order to fill confident about/trust the signal.