Under Armour Hitting Potential Resistance at its 50-Day Moving Average
Apparel and footwear manufacturer Under Armour (NYSE: UA) has jumped sharply over the past month, gaining over 20% since hitting its recent low on December 24. While the rally was welcomed by investors after the stock dropped almost 33% from December 6 through that low.
The rally could run in to some problems in the coming days as the stock has caught up to its 50-day moving average. The stock moved slightly above the trend line on Tuesday, but ended up closing below it. The stock fell on Wednesday and it looks like it could move lower in the coming weeks.
Under Armour had reached overbought territory based on the daily stochastic readings and the indicators made a bearish crossover on Wednesday which could also spell bad news for the stock in the days ahead.
From a fundamental perspective, Under Armour has been underperforming its peers in recent years. The company has seen its earnings decline by an average of 39% per year over the last three years. Sales have increased at a rate of 10% per year over that same period.
The management efficiency measures are below average for Under Armour as well. The return on equity stands at 4.2% and the profit margin is only 2.3%.
Looking at the Tickeron A.I. Trend Predictions for Under Armour, the results show an 87% probability of a drop of at least 4% in the next month.
UA's Indicator enters downward trend
The Aroon Indicator for UA entered a downward trend on August 25, 2025. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 218 similar instances where the Aroon Indicator formed such a pattern. In of the 218 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on UA as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where UA's RSI Oscillator exited the oversold zone, of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for UA just turned positive on August 27, 2025. Looking at past instances where UA's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
UA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. UA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.093) is normal, around the industry mean (4.935). P/E Ratio (21.727) is within average values for comparable stocks, (25.873). Projected Growth (PEG Ratio) (1.738) is also within normal values, averaging (1.499). UA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (0.402) is also within normal values, averaging (1.115).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a designer of branded performance products for men, women and youth
Industry ApparelFootwear
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