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Under Armour Inc (UAA) Earns 80% Rating in Price/Sales Strategy

A recent report highlights that Under Armour Inc (UAA) has received an 80% rating based on its fundamentals, using the Price/Sales Investor model. While it passed multiple criteria, concerns over long-term EPS growth and net profit margins may impact investor confidence.

Date: 
AI Rating:   5

Stock Performance Analysis of Under Armour Inc (UAA)

According to the report, Under Armour Inc (UAA) has gained a positive rating of 80% through the Price/Sales Investor model developed by Kenneth Fisher. This rating demonstrates that UAA has solid underlying fundamentals and stock valuation, indicating some investor interest.

The positive indicators are backed by the following passed criteria:

  • Price/Sales Ratio: Pass
  • Total Debt/Equity Ratio: Pass
  • Price/Research Ratio: Pass
  • Free Cash Per Share: Pass

However, the report also highlights significant areas of concern that may weigh on UAA's stock performance:

  • Long-Term EPS Growth Rate: Fail - This suggests concerns regarding the company’s ability to maintain earnings growth.
  • Three Year Average Net Profit Margin: Fail - An average net profit margin decline points to profitability issues that could deter investors.

The presence of these negative indicators, especially concerning EPS and profit margins, could cause fluctuations in investor sentiment. The failure to meet expectations in these areas might lead to decreased stock demand, as investors typically seek companies with robust growth and stable profit metrics.

In summary, while UAA showcases strong fundamental attributes according to the Price/Sales strategy, the deficiencies in its long-term earnings growth and profit margins remain significant red flags for potential investors, which may affect stock prices negatively.

Stocks:  UAA