Should You Buy Under Armour Stock in 2025? UAE Investor Guide

What is Under Armour?

How much is the Under Armour stock?

The price of Under Armour stock is rising this week. As of today, shares trade at $6.72, reflecting a 3.07% gain over the past week, though down 3.59% in the last 24 hours. The company’s market capitalization stands at $2.79 billion, with a robust average trading volume of 16.3 million shares over the past three months. The forward P/E ratio is 22.42, while no dividend is currently paid to shareholders and the stock shows a relatively high beta of 1.54. Despite ongoing restructuring and recent share volatility, investors in the UAE should watch this stock closely due to its dynamic price movements and growth initiatives.

Our full analysis on the Under Armour stock

After an exhaustive review of Under Armour’s latest quarterly results, coupled with a rigorous analysis of its stock performance over the past three years, our models have synthesized a broad spectrum of financial, technical, and market signals into a cohesive outlook. Drawing on proprietary algorithms that interpret both classic and alternative data, we delve deep into competitive positioning and sector dynamics. So, why might Under Armour stock once again become a strategic entry point into the global apparel and activewear sector in 2025?

Recent Performance and Market Context

Despite a volatile trajectory, Under Armour (NYSE: UAA) has demonstrated encouraging resilience and select positive trends. The stock is currently trading at $6.72 (as of May 30, 2025), showing a seven-day increase of +3.07%, albeit with a six-month retracement of -30.79% and a modest one-year decline of -3.17%. This recent uptick, paired with above-average daily trading volume (11.4 million shares versus a three-month average of 16.3 million), hints at a renewal of interest as the market assesses the company’s recovery trajectory.

Crucially, the company has exceeded analyst expectations on top-line revenue in Q1 2025, posting $1.18 billion versus consensus of $1.15 billion. The macroeconomic context for discretionary consumer brands is gradually brightening with stabilizing supply chains, a soft-landing scenario in North America, and pent-up demand for branded athletic wear. Against this sector backdrop—and in the face of market indecision—Under Armour’s operational restructuring moves suggest latent upside potential that the market may soon recognize.

From a broader strategic perspective, Under Armour’s current market capitalization of $2.79 billion positions it attractively relative to peers, particularly as thematic investing in athletic lifestyle and ‘athleisure’ regains momentum globally, including the MENA region.

Technical Analysis

A closer look at Under Armour’s chart structure reveals a stock at an inflection point, with compelling technical features for short- and medium-term traders:

• Moving Averages: Price has recovered to sit above its 20-day ($5.57) and 50-day ($6.30) moving averages, but remains below the 200-day ($7.83). This configuration often precedes a ‘golden cross’ opportunity if momentum persists, widely interpreted by technicians as a medium-term bullish signal.
• Relative Strength Index (RSI): At 63.4, the RSI is moving from a neutral towards a slightly overbought zone, indicating increasing buying interest but not yet stretched, which underscores room for further advance.
• MACD: The current MACD reading of 0.08 shows a marginal bearish signal but is positioned for reversal if further accumulation pushes the stock higher.
• Support and Resistance: Key technical support is confirmed at $5.00, an area thoroughly tested during recent market weakness, while the $6.60 resistance—recently breached—could now serve as a springboard for moves toward the 200-day average and the consensus target of $7.45.
• Volatility: Under Armour’s 5-year beta of 1.54 signals amplified sensitivity to broader market rallies—a trait often favored by investors seeking aggressive upside exposure during bull phases.

These technical markers collectively suggest an environment where renewed buying momentum, confirmed by volume and pattern recognition, may tip Under Armour into a new positive cycle.

Fundamental Analysis

From a fundamental perspective, Under Armour is in the midst of a transformative recalibration characterized by:

• Revenue & Profitability: While revenues declined 10% year-over-year in Q1, the company managed to expand gross margin by 110 basis points (to 47.5%), highlighting remarkable agility and pricing power even amid top-line headwinds.
• Forward-Looking Valuation: Although unprofitable on a trailing basis, Under Armour’s forward P/E stands at an attractive 22.4—well within range of sector medians, factoring in the anticipated operational turnaround benefits. The consensus price target range ($7.27–$7.45) embeds a notional upside of ~10–11% from current levels, but disciplined execution of restructuring could justify an even more substantial upward rerating.
• Innovation & Market Share: Under Armour continues to leverage its brand equity, especially in North America and with global e-commerce expansion. Despite competitive pressure, the brand retains a devoted consumer base and is undertaking initiatives to drive engagement and lifetime customer value.
• Segment Resilience: The accessories segment achieved +2% growth in Q1, signaling effective niche strategies even as apparel (-11%) and footwear (-17%) temporarily lag. This diversification offers a foundation for broader recovery as product cycles normalize.
• Balance Sheet Health: The company’s cash position and manageable leverage support its ongoing restructuring program, without immediate liquidity concerns.

Under Armour’s ability to improve efficiency, focus investment in core categories, and reinforce international channels appears likely to drive renewed earnings momentum—making current valuations particularly compelling for forward-looking investors.

Volume and Liquidity

An examination of trading volume and share float further reinforces the constructive scenario:

• Robust Trading Activity: Sustained daily trading volume above 11 million shares reflects strong institutional and retail interest, providing tight spreads and reliable entry or exit points.
• Healthy Float: With 188.4 million Class A shares freely floating, the stock permits dynamic price discovery, inviting both tactical and strategic buyers to participate without facing illiquidity premiums.
• Market Confidence: The absence of dividend payments shifts focus to capital gains, enhancing sensitivity to any positive operational and market developments—a characteristic that can accelerate upside moves off technical lows.

Catalysts and Positive Outlook

Under Armour is entering an era rich in strategic catalysts:

• 2024 Restructuring Plan: Management aims to generate $140–160 million in annualized operational efficiencies, a substantial lever to restore margins and fund growth initiatives.
• Gross Margin Expansion: The sustained improvement in gross margin even during revenue contraction demonstrates the company’s nimble cost structure and robust supply chain recalibration.
• Leadership Stabilization: Colin Browne’s ongoing stewardship as interim CEO provides continuity amid challenging conditions, positioning the company to benefit from potential new leadership or strategic partnerships in subsequent quarters.
• Product Innovation and Global Reach: Emphasis on athletic innovation, direct-to-consumer channels, and digital transformation remain at the forefront of corporate strategy. These efforts are likely to bear fruit as global consumer trends increasingly favor premium performance brands, especially in rapidly growing regions such as the Middle East and Asia.
• ESG and Sustainability: Under Armour’s increased focus on sustainability and corporate responsibility aligns with institutional investor preferences, a dynamic especially relevant in ESG-conscious markets such as the UAE.

With macro headwinds abating and operational levers being pulled decisively, Under Armour appears poised to deliver upside surprises as the market recalibrates expectations.

Investment Strategies

For investors refining entry points, several strategic approaches align with the current setup:

• Short-Term: The recent breach of $6.60 resistance, paired with significant volume, sets up a favorable tactical position for momentum-driven traders aiming for moves toward the $7.27–$7.45 consensus targets. Tight stops just below $6.30 (50-day average) could offer prudent risk management.
• Medium-Term: The unfolding benefits of restructuring, along with anticipated margin expansion and operational efficiencies, point to renewed EPS growth over the next 6–12 months. Investors entering now are well-positioned to benefit from both multiple expansion and potential positive earnings surprises.
• Long-Term: For those with a strategic horizon, Under Armour’s undervalued brand equity, growing global reach, and commitment to innovation represent fundamental drivers. The current phase, marked by transformation and recovery, may serve as a classic contrarian entry for patient capital seeking mispriced assets in the consumer discretionary universe.

Investors may find ideal entry points at current technical lows or ahead of company updates on restructuring progress or new product launches, optimizing for upside skew.

Is it the right time to buy Under Armour?

In summary, Under Armour stands at the cusp of a new cycle:

• Improving fundamentals: Despite recent losses, gross margin is improving, and a comprehensive restructuring plan is actively reducing cost base and preserving growth capacity.
• Strengthening technicals: Recent breakouts above key moving averages and robust volume signal gathering momentum, offering tailwinds for upward reevaluation.
• Strategic catalysts: The combination of margin expansion, operational efficiency, and global brand investments creates a potent set of drivers for both near-term rerating and sustainable long-term growth.

With sector tailwinds and consumer trends gradually turning more favorable, Under Armour seems to represent an excellent opportunity for disciplined investors seeking exposure to a dynamic and potentially undervalued leader in the athletic and activewear space. As the company executes on its restructuring and global strategy, the stock may be entering a new bullish phase—worthy of renewed interest and close attention within diversified portfolios.

For investors navigating the evolving landscape of consumer brands, Under Armour offers a compelling blend of value, momentum, and strategic optionality that could yield attractive returns as confidence returns to the sector.

How to buy Under Armour stock in the UAE?

Buying shares of Under Armour (UAA) online is now a straightforward and secure process, especially when using a licensed broker regulated in the UAE. Investors have two main ways to access Under Armour shares: you can buy the stock outright (“spot buying” or “cash buy”), or you can use Contracts for Difference (CFDs) to trade with leverage. Both approaches are accessible from the comfort of your home and can be managed seamlessly via a broker’s app or website. To help you make the best choice, you’ll find a detailed broker comparison further down this page.

Spot Buying

When you buy Under Armour shares in cash, you become the direct owner of the stock, holding it in your brokerage account. This is the most traditional and transparent way to invest in a listed company like Under Armour (NYSE: UAA). UAE brokers typically charge a fixed commission per order, which may vary from AED 18 to AED 35 (roughly $5 to $10), plus possible small regulatory fees.

Example with a $1,000 investment

If the Under Armour share price is $6.72, you could purchase about 148 shares ($1,000 / $6.72 ≈ 148), after accounting for an average $5 commission.
✔️ Gain scenario:
If the share price rises by 10% to $7.39, the value of your shares climbs to approximately $1,100.
Result: that’s a $100 gross gain, or +10% on your investment (excluding taxes/fees).

Trading via CFDs

CFD trading allows you to speculate on the price movement of Under Armour shares without actually owning the underlying stock. With CFDs, you can use leverage to control a larger position with a smaller deposit. Instead of a fixed commission, brokers charge a “spread” (difference between buy/sell prices), and you may incur overnight financing fees if you keep your position open beyond a day.

Example with a $1,000 investment at 5x leverage

You open a CFD position on Under Armour shares, using 5x leverage—meaning you gain exposure to $5,000 worth of stock with just $1,000 as margin.
✔️ Gain scenario:
If the Under Armour share price rises by 8%, your position would gain 8% × 5 = 40%.
Result: that's a $400 gain on your $1,000 margin (before fees), illustrating the powerful effect—along with risks—of leverage.

Final Advice

Before investing, it’s essential to compare the fees, trading platforms, and conditions offered by different brokers licensed to operate in the UAE. Each method—cash purchase or CFD—has its own advantages and risks, and your decision should reflect your investment timeframe, objectives, and risk tolerance. Ready to choose? A comprehensive broker comparison is available 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 stock price has gained over 3% over the past week, outpacing many sector peers. This relative near-term strength follows recent positive market reactions and comes as the company adjusts its strategic focus, despite a year-to-date performance that remains challenged. For investors and analysts in the UAE, this resilience on a weekly basis highlights Under Armour’s potential for tactical trades, relevant for regional asset managers seeking global diversification within consumer discretionary equities.

Under Armour surpassed Wall Street’s Q1 revenue expectations, reporting $1.18 billion versus the $1.15 billion consensus. Despite a year-over-year decline in revenues, this outperformance signals operational stability and a modestly more constructive outlook on top-line execution. Institutions in the UAE with cross-border holdings in sportswear or athletic apparel will note that positive earnings surprises tend to improve sentiment and support stock price stabilization, which is critical when evaluating entry points or portfolio weightings in U.S.-listed consumer names.

The company’s gross margin improved by 110 basis points to 47.5%, reflecting enhanced pricing discipline and supply chain efficiencies. This margin advance, achieved amid broader revenue pressures, demonstrates Under Armour’s ability to execute on cost controls and product mix optimization. For UAE-based investors and retail partners, particularly those distributing global athletic brands, sustained margin improvement is a key metric that underpins future profitability and signals management’s diligence in protecting core financial health.

Under Armour announced a restructuring plan targeting $140–160 million in operational efficiencies, maintaining its focus on global competitiveness. Officially communicated in May 2024, this strategic move aims to streamline operations and optimize costs, a positive signal for institutional shareholders seeking turnaround potential. UAE stakeholders monitoring global supply chain exposure and multi-national brand partnerships can interpret this as a commitment to restoring shareholder value and maintaining agility across international markets.

The consensus 12-month target price stands at $7.45, representing nearly 11% upside from current levels with analysts maintaining a “Hold” stance. While the company faces ongoing revenue and profit challenges, the constructive potential embedded in analyst forecasts is significant for UAE investors considering medium-term positions in U.S. discretionary equities. The “Hold” consensus and positive price target suggest that, for now, global fund managers including those in the United Arab Emirates should monitor upcoming quarters for tangible improvements linked to the restructuring and operational enhancement initiatives.

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.