Under Armour, one of the most recognizable athletic apparel companies in the world, sponsors Steph Curry, Tom Brady, Bryce Harper, and Jordan Spieth. The firm also affiliates itself with many NCAA athletics programs. You can’t watch a game without seeing an Under Armour advertisement or an athlete sporting the memorable logo. Despite this world recognition, Under Armour came from very humble beginnings. In fact, the whole idea for this multi-billion dollar company came from a Maryland fullback in the early 1990s.
How to Buy Under Armour Stock
If you’ve decided to add Under Armour to your portfolio, follow these steps to complete the transaction
Step 1: Determine How Much You Want to Invest
The first step in any stock purchase is deciding how much money you’re willing to invest. Figure out how much of your portfolio to devote to Under Armour stock before talking to a brokerage.
Step 2: Choose Between UAA and UA
Under Armour has two different classes of common stock: Class A (UAA) are shares with voting rights, while Class C (UA) are not.
Step 3: Choose a Brokerage and Place Your Offer
Under Armour shares cannot be purchased straight from the company, so you’ll need to buy shares with a brokerage account. If you don’t have a brokerage, consult our list of the best online brokerages. Then, locate shares using your account and make your purchase with either a market order or a limit order. Here are a few of our favorite online brokerages.
Under Armour Stock and History
Under Armour is a well-known brand for athletic apparel and footwear. It was founded by Kevin Plank back in 1996. The company started by making moisture-wicking sports gear. This gear helped athletes improve their performance. As Under Armour grew, it also faced tough competition from major brands like Nike and Adidas. The company went public in 2005, which was a key moment for its history. Investors regularly check Under Armour's financial health and brand strategies. They want to gauge its growth potential. This exploration will look at Under Armour's stock performance and key events that shaped its brand.
What is Under Armour?
Under Armour is a well-known apparel company based in Maryland, USA. It specializes in performance wear. The company trades under the ticker UAA on the New York Stock Exchange. Under Armour operates in the Consumer Cyclical sector and has a market cap of about $3.64 billion. Its stock has risen by 11.82% over the past year. This growth shows the brand's commitment to quality athletic apparel. The company appeals to a wide range of consumers who want functional and stylish sportswear. Under Armour focuses on enhancing athletic performance and adapts to the changing needs of athletes and fitness enthusiasts.
Under Armour Stock History
Under Armour started in 1996 and got popular with its moisture-wicking clothing. The company went public in 2005, which was an important step in its growth as it raised funds for expansion. Throughout the years, Under Armour has experienced both successes and challenges in the market, especially during the rise of athletic wear and facing more competition.
The electronic registration of ownership shows that the company is modern and adaptable in today's digital world, while the distinctive design of their stock certificate represents its active corporate identity. These factors highlight Under Armour's focus on innovation and brand strength.
Under Armour's strong heritage and market resilience have influenced current investment sentiment, attracting investors. However, its recent performance has varied due to perceptions around its growth strategy and competition in the market. Overall, the company's stock performance reflects how strategic decisions affect its corporate identity and investor interest, showcasing both successes and challenges in the changing apparel industry.
Future Outlook for Under Armour
Under Armour's outlook appears positive after an unexpected profit in the first quarter, which has had a favorable impact on its earnings forecast for fiscal 2025. This financial performance has increased investor confidence, supporting the belief that the company can address its challenges and promote growth.
Given recent developments, Argus Research has raised its rating on Under Armour, suggesting a possible turnaround. However, analysts seem to have differing views on the stock's future, with some taking a cautious approach while others are more optimistic. This mixed sentiment indicates ongoing concerns about market trends and competition in the sportswear sector.
Under Armour's stock has recently increased by 21.92%, indicating a rise in investor interest and optimism about the company's potential. The unexpected profit and favorable outlook for fiscal 2025 also contribute to a generally positive trend, though mixed opinions from analysts highlight the importance of ongoing evaluation of the company's long-term sustainability.
Should You Buy Under Armour Stock?
Investing in Under Armour stock can be a good opportunity for all types of investors. The company is strong in the athletic apparel and performance gear market. Under Armour has built a solid brand and has many loyal customers. It focuses on quality and innovation. Strategic partnerships and endorsements help its growth. The company is also expanding into international markets and improving its e-commerce. These factors make Under Armour stock an interesting choice. Next, we will look at its financial health, market trends, and growth potential.
Growth Potential in Athleisure Market
The global athleisure market is growing fast. This growth is due to changing consumer preferences for comfortable and versatile clothing. Under Armour is in a good position to take advantage of the expanding market. The brand is broadening its product lines to appeal to the athleisure segment. It combines functionality with style, attracting both fitness lovers and casual buyers. More people are adopting active lifestyles. Under Armour's strong brand and innovative products, like moisture-wicking fabrics and advanced footwear, support long-term growth in the athleisure market.
Strategic Restructuring and Cost Management
Under Armour is restructuring to improve operations and boost profitability. This plan includes optimizing the supply chain, cutting excess inventory, and focusing on profitable products. Management has successfully reduced costs and increased efficiency. These changes are reflected in better gross margins. By improving operations and managing costs, Under Armour aims to increase profitability in a competitive market. Investors can be hopeful for sustainable earnings growth as these efforts take effect.
Digital and Direct-to-Consumer Expansion
Under Armour is investing heavily to adapt to changing retail dynamics. They are focusing on digital infrastructure and direct-to-consumer (DTC) channels. This shift allows the company to control its brand narrative and engage directly with customers. It also helps capture higher profit margins. The changes include improving the online shopping experience, investing more into mobile platforms, and using data analytics for personalized interactions. Under Armour's digital sales are growing, and consumer preference for online shopping is rising. By reducing reliance on traditional retail, the company can better handle market fluctuations and strengthen relationships with customers.
Considerations Before Buying Under Armour Stock
Before investing, consider several key factors about Under Armour. The athletic apparel industry is competitive and always changing. It's important to know Under Armour's position within this market. Analyze the company’s financial performance, growth potential, and brand strength. These factors can affect stock prices. Also, pay attention to economic conditions and consumer trends. Challenges like supply chain issues or shifts In athletic preferences are worth noting. Conduct thorough research to make informed decisions about adding Under Armour stock to your portfolio.
Financial Performance
Analyze Under Armour's recent financial statements. Focus on revenue growth, profit margins, and overall earnings trends. Review key metrics such as operating income, net profit, and cash flow. Consider whether the company consistently meets or exceeds analyst expectations. Assess how the company manages its expenses and debt. Look for signs of financial instability, such as declining sales or narrowing profit margins. These could indicate potential risks.
Market Position and Competition
Under Armour competes in a highly competitive market. This market is dominated by well-established players like Nike and Adidas. It is important to evaluate how Under Armour positions itself in the industry. Key factors include market share, brand strength, and consumer loyalty. The company’s product lines and innovations should also be considered. It’s crucial to determine if these offerings resonate with consumers and set Under Armour apart from its competitors. Additionally, broader industry trends are important to monitor. This includes shifts in consumer preferences toward athleisure and digital shopping experiences. Understanding how Under Armour adapts to these changes is necessary for a complete assessment.
Management Strategy and Vision
The management team at Under Armour plays a crucial role in the company's future success. They focus on initiatives like direct-to-consumer sales, international expansion, and digital transformation. It is important to understand the long-term vision set by the CEO and board. Evaluate whether there is a clear and achievable plan in place to drive growth. Consider how effectively management has handled past challenges, including supply chain disruptions and changes in consumer behavior. Assess whether they have been proactive in addressing potential risks.
Should You Buy Under Armour Stock?
When thinking about purchasing Under Armour Inc stock, investors should take into account various factors, including its stock grades, which are a Value Grade of C, a Growth Grade of C, and a Quality Grade of A. These grades represent the company's valuation in relation to its earnings potential and overall financial condition, with the high Quality Grade suggesting strong operational efficiency and stability.
Investors should make choices that fit their own financial goals and willingness to take risks. If someone is looking for long-term stability, they might find Under Armour's quality appealing, even though its value and growth potential are average. On the other hand, those who prefer less risk might consider Under Armour less appealing than competitors like Nike and Adidas, which usually show better growth and valuation.
It's important to compare Under Armour with its competitors in the Apparel & Accessories industry to understand its market position and potential returns. The final decision should align with the investor's strategy and risk tolerance.
Frequently Asked Questions
Is Under Armour a good stock to buy?
To determine if Under Armour is a good stock to buy, consider its valuation, recent performance, market trends, and competitive position, and ensure your research aligns with your financial goals.
Does Under Armour pay dividends?
Under Armour does not currently pay dividends. The company has focused on reinvesting its profits into growth initiatives and product development rather than distributing cash to shareholders.
Why are there two Under Armour stocks?
Under Armour has two stock classes: Class A (UA) shares with voting rights and Class C (UAA) shares without. This allows founder Kevin Plank to maintain control while raising capital, with Class C shares being more widely traded.
About Dan Schmidt
Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on stocks. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.