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Under Armour - AI Stock Analysis

Analysis generated August 26, 2024

Under Armour, Inc. (UA) is a leading sports equipment and apparel company that specializes in innovative performance apparel, footwear, and accessories. Founded in 1996 by former University of Maryland football player Kevin Plank, the company has grown significantly, becoming a recognized brand in the sports and fitness industries. Under Armour's mission is to make all athletes better through passion, design, and the relentless pursuit of innovation.

Fundamental Analysis

Examining Under Armour's recent financial performance reveals several areas of concern. The revenue for the last quarter was $1.18 billion, showing an 11.15% decline from the previous quarter and a 10.12% decrease from the same quarter last year. This consistent decline in revenue suggests underlying challenges in sales growth or market competitiveness.

Net income for the last quarter was $305 million. However, compared to the previous quarter, this represents a drastic decrease of 4,750.21%, and compared to the same quarter last year, an even more alarming decrease of 3,151.21%. Such significant declines point to potential inefficiencies or substantial one-time expenses impacting profitability.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the last quarter was $262 million, which is a drop of 709.48% compared to the previous quarter and 631.61% lower than the same quarter last year. These numbers raise serious concerns about the company's operational performance.

The current Price-to-Earnings (P/E) ratio is 14.83, which falls within a generally acceptable range. This indicates that the stock is neither overvalued nor undervalued, but other negative fundamental indicators suggest caution.

Technical Analysis

Under Armour's stock shows a bullish trend with today's closing price at $8.42, representing a 22.21% increase from a month ago and a 16.94% rise from a year ago. These short-term and long-term trends are positive indicators.

Reviewing the Simple Moving Average (SMA), the current SMA10 is $8.36, up from the previous SMA10 of $8.31, further indicating a potential upward trend. However, the Relative Strength Index (RSI) is currently at 52.9, suggesting a neutral condition rather than a strong bullish or bearish momentum.

Alternative Data Analysis

Analyzing alternative data provides mixed insights. Under Armour currently has 777 open job positions, reflecting a 6% decrease in the last few months, potentially indicating efforts to cut costs or improve margins. Employee sentiment about the company's business outlook remains neutral.

Customer acquisition data shows approximately 7.4 million visitors to Under Armour's website, with stable traffic. Moreover, the company's mobile app sees around 1,200 downloads daily, a 9% increase recently, which could indicate growing customer interest.

Nevertheless, customer engagement appears stagnant. Under Armour's Instagram and Twitter followers, numbering 8.3 million and 960,000, respectively, have not increased, suggesting a potential decline in brand interest or engagement.

The AltIndex AI score for Under Armour stands at 47, which translates to a "hold" signal. This score is derived from a combination of fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

In conclusion, Under Armour exhibits a mixed bag of signals across fundamentals, technicals, and alternative data. The significant declines in revenue, net income, and EBITDA are concerning and might outweigh the positive technical trends and stable or slightly improving alternative data metrics. The neutral RSI and AI hold signal suggest caution and a lack of clear direction.

Given these analyses, my recommendation is to "Hold" Under Armour stock. Investors should closely monitor upcoming quarterly reports for signs of financial improvement or further decline. Additionally, watch for any significant shifts in alternative data and market sentiment before making more aggressive moves.

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.