Under Armour Stock Predictions: An Algorithmic Analysis (UA)

Under Armour Stock Predictions

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First has had success predicting the movement of Under Armour’s stock price in the past. In this one-year forecast from May 29th, Under Armour had a strong Bullish signal strength of 27.22 and a predictability indicator of 0.4. In accordance with the algorithm’s prediction, the stock price increased 68.97% during that time.

under armour stock predictions

I Know First published a bullish article on Under Armour, the second largest athletic retailer by sales, on Seeking Alpha. Having explained how I Know First’s algorithm works and providing an example of its success in the past, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Under Armour are included.

under armour stock predictoins

Under Armour is among the top stock picks for both time horizons. The strong, positive signal strengths indicate that the stock is currently undervalued and provide solid upside potential to investors. This is in agreement with the strong bullish fundamental analysis of the company. The company’s revenue growth and profitability should increase during the next quarter, acting as a positive catalyst for the stock price that has fallen since the most recent earnings report.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Under Armour. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.