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Jan 08, 2020
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Under Armour (UA, $18.59) coverage resumed at J.P. Morgan with neutral rating

Under Armour (UA, $18.59) coverage resumed at J.P. Morgan with neutral rating

Analysts at J.P. Morgan resumed coverage of Under Armour this week.

This time, the  J.P. Morgan analysts gave a neutral rating on the sports and casual apparel maker’s stock . Their last rating on the shares was  outperform. Analysts at the bank have a $23 price target on the shares.

J.P. Morgan expects 4.7% fourth-quarter revenue growth for Under Armour, compared to Wall Street’s estimate of 5.7% growth. Fiscal 2020 revenue growth estimate is 3.8% at J.P. Morgan, vs. 4.7% on Wall Street.  EBIT estimate is $298 million at J.P. Morgan, compared to $311 million estimate of the Street.

 

Related Ticker: UA

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


Momentum Indicator for UA turns positive, indicating new upward trend

UA saw its Momentum Indicator move above the 0 level on October 29, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned positive. In 58 of the 75 cases, the stock moved higher in the following days. The odds of a move higher are at 77%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

UA moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for UA crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.

Following a +9.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where UA advanced for three days, in 191 of 280 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.

The Aroon Indicator entered an Uptrend today. In 152 of 219 cases where UA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.

Bearish Trend Analysis

The 10-day RSI Indicator for UA moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 26 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 79%.

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 42 of 56 cases where UA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 75%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.

UA broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 15 (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (1.531) is normal, around the industry mean (2.911). P/E Ratio (-4.426) is within average values for comparable stocks, (14.016). Projected Growth (PEG Ratio) (1.073) is also within normal values, averaging (0.686). Dividend Yield (0.000) settles around the average of (0.328) among similar stocks. P/S Ratio (0.423) is also within normal values, averaging (0.827).

The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. UA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (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 SMR rating for this company is 97 (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 Profit vs. Risk Rating rating for this company is 100 (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 90, placing this stock worse than average.

Notable companies

The most notable companies in this group are VF Corp (NYSE:VFC), G-III Apparel Group Ltd (NASDAQ:GIII), Canada Goose Holdings (NYSE:GOOS), Lakeland Industries (NASDAQ:LAKE).

Industry description

Apparel/footwear might be slightly more ‘cyclical’ in the largely non-cyclical category of non-durables. While digital giants like Amazon have been rapidly expanding their presence, traditional clothing/footwear retailers have also been bulking up their online presence in recent years, to milk the burgeoning trend of online shopping among consumers across the globe. The apparel and footwear retail market was valued at around $ 360 billion in 2018, and this figure was expected to reach about $386 billion by 2020 (according to a Statista report). NIKE, Inc, V.F. Corporation and Under Armour, Inc. are some of the companies with the largest U.S. stock market caps in this segment.

Market Cap

The average market capitalization across the Apparel/Footwear Industry is 3.03B. The market cap for tickers in the group ranges from 1.66K to 25.98B. HMRZF holds the highest valuation in this group at 25.98B. The lowest valued company is SQBGQ at 1.66K.

High and low price notable news

The average weekly price growth across all stocks in the Apparel/Footwear Industry was 32%. For the same Industry, the average monthly price growth was 35%, and the average quarterly price growth was 16%. JXG experienced the highest price growth at 40%, while PLCE experienced the biggest fall at -34%.

Volume

The average weekly volume growth across all stocks in the Apparel/Footwear Industry was -24%. For the same stocks of the Industry, the average monthly volume growth was -8% and the average quarterly volume growth was -2%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 45
Price Growth Rating: 50
SMR Rating: 72
Profit Risk Rating: 89
Seasonality Score: 11 (-100 ... +100)
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General Information

a designer of branded performance products for men, women and youth

Industry ApparelFootwear

Industry
Apparel Or Footwear
Address
101 Performance Drive
Phone
+1 410 468-2512
Employees
14100
Web
https://www.underarmour.com
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