#3 - Under Armour (NYSE:UAA)
If you have a speculative itch to scratch, Under Armour Inc. (NYSE: UAA) is worth a close look. It’s been a disastrous year for athletic apparel stocks in general. Even premium brands like Lululemon are seeing double-digit stock price declines. Under Armour stock is down 26% in 2024, and the company hopes that the return of its founder, Kevin Plank, as CEO will turn around the company’s fortunes.
The company’s financials aren’t awful, but they show the difficulties of competing in this category. As Plank has outlined, the company faces three key issues. First, its product cycle takes too long. Second, it is unable to keep popular items in stock. Third, it has lost its unique selling proposition in the face of new competitors in an ultra-competitive market.
Under Armour used to be the challenger brand, but now it’s the one being challenged. But if you believe that there may be no one better to meet that moment than the company’s founder, UAA stock may be a steal, trading at just $6.37 per share as of July 2, 2024.
About Under Armour
Under Armour, Inc, together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.
Read More - Current Price
- $11.12
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 12 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $7.94 (28.6% Downside)
