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Under Armour - AI Stock Analysis

Analysis generated May 16, 2025

Founded in 1996 by Kevin Plank, Under Armour is a prominent American sportswear company specializing in performance apparel, footwear, and accessories. The company aims to enhance athletic performance through innovative and technologically advanced products. Over the years, Under Armour has positioned itself as a leading brand in the competitive sportswear market, battling against industry giants like Nike and Adidas.

Fundamental Analysis

Under Armour's financial performance shows mixed signals. Revenue for the last quarter stood at $1.4 billion, reflecting a minor increase of 0.14% from the previous quarter, a positive sign of growth. However, compared to the same quarter last year, revenue has declined by 5.72%, signaling potential instability.

The company's net income for the last quarter was $1.2 million, an alarming drop of 99.28% compared to the quarter before and a 98.92% decrease year-over-year. Such drastic declines raise red flags about the company's profitability.

EBITDA for the last quarter was $59 million, down by 65.29% from the previous quarter and by 44.13% from the same quarter last year. This substantial decrease indicates deteriorating core business performance.

The current Price-to-Earnings (P/E) ratio stands at 14.27, indicating that the stock is neither undervalued nor overvalued but is within the normal range.

Technical Analysis

Today's stock price for Under Armour is $6.20, marking an impressive 17.42% increase compared to one month ago, evidencing a bullish short-term trend. However, the stock price has decreased by 6.49% compared to a year ago, posing concern over long-term performance.

The bullish trend is supported by the current Simple Moving Average (SMA10) of 5.82, which is higher than the previous SMA10 of 5.75. Yet, with the Relative Strength Index (RSI) at 65.4, the stock is in a neutral zone, suggesting no immediate overbought or oversold conditions.

Alternative Data Analysis

Examining alternative data reveals both positive and negative insights about Under Armour. The company has 741 open positions, a 57% increase in recent months, suggesting plans for growth and expansion. However, employee sentiment remains neutral, providing no additional insights into internal company morale.

On the customer acquisition front, the estimated 4.9 million visitors to Under Armour's webpage represent a massive 46% drop in recent months. Additionally, daily mobile app downloads are estimated at 640, down 34% recently. Both indicators suggest a worrisome decline in customer interest.

Customer engagement metrics show Under Armour's Instagram followers holding steady at 8.3 million and Twitter followers at 940,000. The lack of growth in followers could signify waning interest in the brand.

Finally, the AltIndex AI score for Under Armour is 27, signaling a strong sell recommendation based on a comprehensive analysis of fundamental, technical, and alternative data.

Conclusion and Recommendation

In conclusion, Under Armour presents a mixed investment profile. While short-term technical indicators show positive trends, fundamental data raise serious concerns about the company's underlying performance and profitability. Additionally, customer acquisition and engagement metrics indicate declining interest, further supported by the AI score of 27, which strongly recommends selling the stock.

Potential investors should weigh these factors carefully before making any investment decisions in Under Armour. Given the current data, a cautious approach is advisable.

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.