UAA

Under Armour, Inc.

7.58
USD
-0.26%
7.58
USD
-0.26%
7.44 27.28
52 weeks
52 weeks

Mkt Cap 1.43B

Shares Out 188.65M

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Is It Too Late To Consider Buying Under Armour, Inc. (NYSE:UAA)?

Under Armour, Inc. (NYSE:UAA), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Under Armour’s outlook and value based on the most recent financial data to see if the opportunity still exists. Is Under Armour Still Cheap? The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13% below my intrinsic value, which means if you buy Under Armour today, you’d be paying a fair price for it. And if you believe the company’s true value is $11.45, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Under Armour’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. What does the future of Under Armour look like? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Under Armour's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? It seems like the market has already priced in UAA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you’ve been keeping tabs on UAA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Diving deeper into the forecasts for Under Armour mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts. If you are no longer interested in Under Armour, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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