Under Armour Stock Drop Looks Sharp, But How Deep Can It Go?
Under Armour (UA) stock is down 9.0% in 5 trading days. The recent slide reflects renewed concerns around weak demand, tariff impacts, and declining North American sales, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Under Armour stands today.
- Size: Under Armour is a $2.8 Bil company with $5.0 Bil in revenue currently trading at $6.70.
- Fundamentals: Last 12 month revenue growth of -6.4% and operating margin of -1.3%.
- Liquidity: Has Debt to Equity ratio of 0.59 and Cash to Assets ratio of 0.1
- Valuation: Under Armour stock is currently trading at P/E multiple of -5.5 and P/EBIT multiple of -43.1
- Has returned (median) -11.5% within a year following sharp dips since 2010. See UA Dip Buy Analysis.
These metrics point to a Very Weak operational performance, alongside Very Low valuation – making the stock Unattractive. For details, see Buy or Sell UA Stock
That brings us to the key consideration for investors worried about this fall: how resilient is UA stock if markets turn south? This is where our downturn resilience framework comes in. Suppose UA stock falls another 20-30% to $5 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- What’s Next For Under Armour Stock?
- Down 20% This Year, Will Under Armour’s Stock Recover Following Q4 Results?
- Down 25% This Year Will Under Armour Stock Rebound After Its Q2?
- Under Armour Stock Down 24% This Year, What’s Next?
- Under Armour Stock Up 28% Over Last Month, What’s Next?
- What To Watch For In Under Armour’s Stock Post Q1?
2022 Inflation Shock
- UA stock fell 73.8% from a high of $22.63 on 19 November 2021 to $5.92 on 20 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $11.18 on 2 February 2023 , and currently trades at $6.70
| UA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -73.8% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- UA stock fell 64.2% from a high of $19.27 on 3 January 2020 to $6.89 on 2 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 March 2021
| UA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -64.2% | -33.9% |
| Time to Full Recovery | 335 days | 148 days |
2018 Correction
- UA stock fell 61.2% from a high of $27.32 on 10 January 2017 to $10.59 on 3 November 2017 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| UA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.2% | -19.8% |
| Time to Full Recovery | Not Fully Recovered | 120 days |
Feeling jittery about UA stock? Consider portfolio approach.
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