Under Armour UAA shares soared 14% in the last trading session to close at $5.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.1% loss over the past four weeks.
U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Under Armour’s strategic shift toward premium direct-to-consumer offerings and a rapidly growing loyalty program is reinforcing brand engagement, supporting higher pricing power, and positioning the company for sustained margin improvement and long-term revenue stability.
This sports apparel company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -181.8%. Revenues are expected to be $1.16 billion, down 13.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Under Armour, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on UAA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Under Armour belongs to the Zacks Textile - Apparel industry. Another stock from the same industry, Ralph Lauren RL, closed the last trading session 14.3% higher at $208.37. Over the past month, RL has returned -18.3%.
For Ralph Lauren
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Under Armour, Inc. (UAA): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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