The Under Armour (UA) stock charts provide a good example of how many consumer-based stocks are breaking meaningful technical support areas.
Source: UA Stock: It’s Judgment Day for Under Armour Inc | InvestorPlace
Serge Berger is taking the time to update what’s happening with UA since the Q3 announcement. His description here is a bit more technical than I like, but in general he is stating what I said a while back, Under Armour will possibly hit the 20s. His advice in this instance is to hold. I’m not a market analyst. My goal is to get the people in my culture to begin to look at kicks as more than just style. Most of the OG sneakerheads are starting families. While we still collect and buy, we also have 401ks and we are looking at making our money last. This should be happening with Gen Z and Millennials.
My opinion is rather simple about what you should do, be patient. I have said that the growth of Under Armour has been tied to its relatively new status. The company existed as an apparel company for the first ten years. The natural progression was to implement footwear. The company was going to grow because there were areas that weren’t being met. Once Under Armour became a footwear company and signed its first superstar in Steph Curry, the company was going to level off and have to find new markets in order to maintain or acquire more growth. In short, the fact that Under Armour actually gave its shareholders dividends and profit, was going to eventually be their “bump” in the road and this is a bump.
Once again I’m not an analyst and you can’t take my observation as law, but I think people are going to continue to sell causing the stock to hit the high 20s. Should you buy? Yes. Under Armour is going to become more prominent in the next few years. MLB, endorsement of various colleges, and if really the marketing team gets it together, I see a return to the high 30s, low 40s.
