Should I buy Under Armour stock in 2025?

What is Under Armour?

How much is the Under Armour stock?

The price of Under Armour stock is declining this week. As of now, Under Armour (UAA) trades at $6.72 USD, down 3.59% in the last 24 hours and showing a 3.07% loss over the past week. The company currently holds a market capitalization of $2.88 billion, with an average daily trading volume of 16.3 million shares over the last three months. No price/earnings ratio is available as the company is operating at a loss, and there is no dividend yield at present. With a stock beta of 1.54, Under Armour shares tend to be more volatile than the broader market, which may present both risks and opportunities for investors in South Africa.

Our full analysis on the Under Armour stock

Having reviewed Under Armour’s latest financial results and examined the stock’s multi-year performance, our analysis incorporates a rigorous blend of quantitative and qualitative inputs, including key financial metrics, relevant technical signals, sector trends, and benchmarked peer comparisons, all filtered through proprietary evaluation algorithms. As Under Armour’s transformation gathers momentum, recent fundamentals and evolving market dynamics suggest a potential inflection point for the stock within the athleisure and performance apparel sector. So, why might Under Armour stock once again become a strategic entry point into consumer discretionary growth in 2025?

Recent Performance and Market Context

Despite facing a turbulent period, Under Armour’s stock ($6.72 as of 30 May 2025) is showing intriguing resilience and positioning. Over the past year, the stock’s modest decline of -3.17% belies substantial volatility and repricing, reflecting both sector-wide pressures and rapid internal change. The six-month performance (-30.79%) underscores the market’s recalibration during the company’s transitional phase—yet, these compressions have set the stage for more attractive entry valuations.

Several positive recent events underscore renewed optimism. The company has accelerated its $500 million share repurchase programme (with $90 million already deployed), signaling strong management confidence and direct shareholder value creation. The announced strategic restructuring, spearheaded by founder and returning CEO Kevin Plank, is addressing cost inefficiencies and operational agility, with visible early benefits in gross margin improvement (up 170 basis points to 46.7% in Q4 2025).

The overall macro and sector backdrop presents further tailwinds:

• Consumer Demand: Despite short-term weakness in global discretionary spending, there is broad consensus amongst analysts that the global athleisure and performance apparel market will continue to grow, especially as digital and experiential retail rebound post-pandemic.
• Inflation Moderation: Cooling inflation in the US and EMEA is expected to benefit consumer sentiment for premium performance brands.
• Rand Resilience: For South African investors, dollar-denominated equities such as Under Armour offer a useful hedge amidst rand volatility and broader emerging market currency risk.

All told, while recent volatility has tested investor sentiment, the groundwork for stabilisation and renewed upward momentum appears notably robust.

Technical Analysis

Technical signals for Under Armour suggest a transition from extended weakness to early-stage bullish momentum—often a strong foundation for re-entry strategies:

• Relative Strength Index (RSI): At 63.58 (as of 21 May 2025), the 14-day RSI remains in the upper neutral zone, just below classic overbought thresholds. Notably, the RSI has demonstrated positive divergence versus declining price action, an early reversal indicator.
• MACD: The current MACD of 0.08 signals emerging positive momentum, and the overlap with bullish divergence from RSI reinforces the technical case for an upswing.
• Moving Averages: The stock is now testing major support at $5.00, having re-crossed the $6.60 resistance—indicative of potential new range-bound support and a technical floor.
• Golden Star Signal: A rare “golden star” pattern emerged on 9 May 2025 in short-term trading charts, historically linked to momentum shifts in Under Armour’s stock.

With these signals aligning, both short- and medium-term trading structures appear tilted toward constructive upside—especially as the company approaches a fresh set of catalysts in Q3 2025.

Fundamental Analysis

Under Armour’s recent fundamentals reveal a company in turnaround mode, underpinned by structural competitive strengths and a markedly improved valuation profile:

• Revenue, Profitability & Expansion: FY2025 saw revenues at $5.16 billion (down 9% YoY), reflecting market-wide pressures and deliberate channel rationalisation. Adjusted net income, however, reached $135 million ($0.31 per share adjusted), pointing to underlying core profitability even as headline figures lag.
• Valuation Compelling: With a current Price/Sales ratio of just 0.58 and Price/Book at 1.57, Under Armour’s valuation is significantly discounted relative to both historic averages and leading peers like Nike and Adidas—offering meaningful upside potential as normalization unfolds. The lack of a current P/E reflects a transitional period; however, adjusted earnings point toward a swift rerating as margins recover.
• Structural Strengths:
• Innovation: Proprietary technologies (HeatGear, ColdGear, HOVR) continue to underpin the brand’s premium positioning and market appeal.
• Brand Equity: Under Armour remains recognized as a leader in performance apparel, with a defensible niche across North America, EMEA, and increasingly global e-commerce channels.
• Adaptability: The current restructuring is not “window dressing”—it is a comprehensive reset, pivoting toward category-led management and more profitable, streamlined distribution.

These core elements—supported by prudent management and an expanding product offering—arguably justify renewed interest, especially at current compressed multiples.

Volume and Liquidity

Strong and sustained trading volume signals underlying market confidence and healthy liquidity, crucial for institutional and private investors alike:

• Average Daily Volume: With an average of 16.3 million shares traded over the last three months, Under Armour’s stock exhibits robust liquidity, minimizing slippage risk and supporting efficient price discovery even during heightened volatility.
• Public Float: The substantial float (188.43 million Class A shares) supports dynamic valuation and ensures broad, active participation from both global funds and retail investors.

This active market makes Under Armour well-suited for dynamic investors seeking exposure to an evolving consumer discretionary play with rising volume indicators.

Catalysts and Positive Outlook

A range of structural and operational catalysts positions Under Armour for a potential bullish phase:

• Management Reset: Kevin Plank’s return as CEO marks a renewed strategic vision, driving brand repositioning, leaner execution, and operational discipline.
• Restructuring: The ongoing $140–160 million restructuring program is already yielding tangible efficiency improvements, with gross margin expansion, tighter SKU management, and lower fixed costs.
• Share Buybacks: Aggressive repurchases signal management’s conviction in intrinsic value and typically act as downside support during market corrections.
• Product Innovation: Enhanced investment in proprietary textile sciences and category leadership (notably accessories, up 1.3% YoY) augur well for differentiated growth.
• Sustainable Operations: While not explicitly ESG-focused, Under Armour’s supply chain rationalisation, leaner manufacturing footprint, and digital channel expansion position the company to benefit from rising global ESG awareness.

Sector-wide, recovery in sports and experiential events, increasing health and fitness spend, and a return to value in consumer discretionary are all favorable contextual drivers. Regulatory risks appear moderate, while Under Armour’s international diversification (notably stable EMEA sales) provides defensiveness against US-specific headwinds.

Investment Strategies

Under Armour’s current setup offers strategic entry opportunities across multiple investor profiles:

• Short-term traders: The recent technical bottoming at $5.00-$6.60 and strong bullish divergence may enable tactical entries aiming for 10–20% rebound as earnings momentum and buyback flow support upside volatility.
• Medium-term investors: As the restructuring results filter through, improvements in gross margin and operational leverage are likely to drive a multi-quarter rerating, especially as sell-side consensus revises forecasts upward with visible execution.
• Long-term allocations: Priced well below historic averages and peer multiples, Under Armour now appears to offer a rare “value meets growth” setup in a global brand. Positioned just ahead of anticipated Q1 2026 results (early August), early entrants may capitalize on low base effects and high operating leverage—potentially ahead of positive earnings surprise.

Ideal portfolio construction could involve staged accumulation near key technical supports, opportunistically adding ahead of or just after major catalysts (such as continued margin outperformance or new product launches) for optimal risk-return.

Is it the Right Time to Buy Under Armour?

In brief, Under Armour combines a compelling set of strengths—an iconic global brand, ongoing operational turnaround, clear technical bullish signals, and a significantly discounted valuation—at a time when consumer sentiment and sector fundamentals are stabilizing. Management’s decisive actions on restructuring and shareholder returns bolster conviction that the company is poised for a new chapter of profitable, margin-accretive growth.

Given attractive technical levels, improving business momentum, and accessible entry valuations, Under Armour stock seems to represent an excellent opportunity for investors seeking diversified consumer exposure with built-in downside protection and long-term upside leverage. The fundamentals increasingly justify renewed interest, and as Q3 and Q4 catalysts approach, the stock may be entering a new bullish phase.

For investors in South Africa seeking US dollar exposure and participation in a global megatrend, Under Armour’s risk-reward profile stands out. As always, a measured, research-driven approach remains key—but Under Armour appears well positioned to outperform as both sentiment and strategy align.

How to buy Under Armour stock in South Africa?

Buying Under Armour stock online is now both simple and secure for South African investors, thanks to access to well-regulated online brokers. You have two primary options: purchasing shares outright (spot buying), which offers direct ownership, or trading via Contracts for Difference (CFDs), enabling greater leverage with exposure to price movements. Each method caters to different investor needs and risk appetites. To make the right choice, it's important to compare broker fees, platforms, and terms—a detailed broker comparison is available further down this page.

Spot Buying

A cash purchase (or spot buying) means acquiring Under Armour shares directly through your brokerage account—you become a shareholder, eligible for any shareholder rights or dividends (note: Under Armour currently does not pay dividends). With most leading brokers in South Africa, you can invest in US stocks like Under Armour (NYSE: UAA) in US dollars or sometimes in ZAR. Standard commission-based fees typically apply, often around $5–$10 (approx. R90–R180) per trade.

Practical example

If Under Armour is trading at $6.72 (approx. R125) per share, a $1,000 investment (roughly R18,600 at R18.60/USD) allows you to buy about 148 shares. After a broker commission of around $5, you would be fully invested.
✔️ Gain scenario:
If Under Armour’s price climbs 10% to $7.39, your shares are now worth $1,100.
Result: +$100 gross gain, representing +10% on your original investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on the price movements of Under Armour shares without owning them. CFDs are leveraged products, available on most online broker platforms in South Africa, and enable you to open positions with a fraction of capital compared to purchasing shares outright. CFD fees are usually the spread (the difference between buy/sell price) and overnight financing if you hold your position beyond one day.

Example with leverage

You open a CFD position for Under Armour with $1,000 (R18,600) using 5x leverage—your market exposure is now $5,000.
✔️ Gain scenario:
If the share price rises by 8%, you realize a profit of 8% × 5 = 40%.
Result: +$400 gain on your $1,000 margin deposit, excluding any fees or overnight costs.

Final Advice

Before investing in Under Armour shares, be sure to carefully compare the fees, conversion charges, and trading conditions of the different online brokers available in South Africa. Explore which platform best aligns with your financial goals and preferred method of investing. Remember: spot buying suits long-term investors seeking direct ownership, while CFDs offer flexibility and leverage for active traders. You'll find our up-to-date broker comparison tool further down this page to help you make an informed decision.

Our 7 tips for buying Under Armour stock

The latest news about Under Armour

Under Armour's international revenue in the EMEA region, including South Africa, remained stable in 2025 despite broader global challenges. While the company faced revenue contractions in most markets during its fiscal year 2025, its EMEA region—which covers Europe, the Middle East, and Africa—demonstrated resilience, posting a modest growth of 0.4%. For South African stakeholders, this suggests relative stability in Under Armour’s regional operations, counterbalancing sharper declines in North America and Asia-Pacific, and pointing to pockets of sustained brand strength in the local market.

Recent technical indicators signal a possible positive turnaround for Under Armour’s stock in the short term. Following a challenging 6-month period, Under Armour’s technical signals have turned moderately bullish: an RSI (14 days) of 63.58 as of 21 May 2025 and bullish divergences in both RSI and MACD indicators suggest potential upward momentum in the share price. The technical “Golden Star” signal detected in May could indicate increased interest among short-term traders, a factor relevant for local financial professionals tracking US equities with cross-border portfolios.

The company’s Q4 2025 gross margin showed strong improvement, supporting future profitability initiatives. Gross margin rose by 170 basis points to 46.7% in the most recent quarter, reflecting a successful implementation of cost and inventory management strategies amidst restructuring. For analysts and investors in South Africa, where inflation and cost-control remain top investment concerns, this margin improvement signals disciplined management and could lead to better-than-expected profitability as the company continues optimizing its international supply chain, parts of which directly influence local distribution.

Under Armour is executing a major, multiyear strategic restructuring with a focus on efficiency and operational reset, impacting global and local positioning. In May 2025, the company reaffirmed its commitment to a comprehensive restructuring program, having recognized $58 million in related charges for the year, towards an anticipated total of $140–160 million. The strategy centers on enhanced efficiency, tighter distribution, and renewed product innovation, all of which affect its offerings and delivery models in South Africa. These steps are being favorably received by capital markets and improve Under Armour’s agility in competitive regional markets.

Active share buyback initiatives highlight management's confidence and support shareholder value, relevant for South African institutional investors holding US-listed equities. Under Armour continued its $500 million share repurchase authorization, having executed $25 million in buybacks during Q4 and $90 million to date. This ongoing activity, particularly amid share price weakness, signals management’s belief in the company’s long-term valuation and may serve to underpin the stock’s floor—a positive factor for ZA-based funds and asset managers with exposure to US consumer discretionary stocks.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.