After the last earnings report we were shown some images of the new UA headquarters and distribution center, which it hopes will propel UA to the next level of service and most importantly stock inventory control. What has been a curse in recent years is the continual discounting of goods to reduce inventory, which in turn has devalued the brand and hit margins....
I'm always watching under armour because it seems to have so much room to grow.
There is a lot of interesting unexplored territory for the stock based on the chart, but then again that is some pretty heavy resistance it has yet to break.
You can see my previous note on UA but it got rejected off resistance.
How often do we see Nike goods sold at discounted rates? not very. Whereas UA seems to always be on sale in every retailer, that is not a brand that people wants to continue to wear. UA's board are working hard to stop this practice as it is just making them BUSY FOOLS, selling a lot but for no margin. The sports sector is dominated by NIke and ADDIDAS and it is ...
UA recently broke resistance (yellow line), if the stock can push past this and set a new support this would be very compelling.
note that I'm not advising a position yet, this looks more bearish short term but we will have to wait and see.
with Trump and China going at each other with Tariffs this will probably sell off with the rest of the market
I would just watch a bit for now on UA - it does seem like the downward trend could be broken so it might be a good to look for a place to buy, however their fundamentals kind of suck:
low sales Q/Q & high forward...
Really don't care too much for growth value in retail; can't say the recent / current pop isn't interesting to watch, though. Haven't seen an A+ long-term play in the sector for a while so, this one is something to watch.