A Look At Under Armour (UAA) Valuation After Supreme Court Tariff Reversal

The U.S. Supreme Court’s decision to overturn Trump era tariffs has quickly filtered into markets. Under Armour (UAA) is among the stocks reacting as investors reassess potential cost pressures for manufacturers and retailers.

See our latest analysis for Under Armour.

Against the tariff news, Under Armour’s recent 30 day share price return of 20% and 90 day return of 69.33% point to building momentum. However, the 5 year total shareholder return of a 66.49% decline shows the longer term picture has been much tougher.

If this tariff decision has you thinking about where else cost and growth stories might emerge, it could be worth scanning 22 top founder-led companies as a fresh source of ideas.

With tariffs in flux, a recent 69.33% 90-day run, and an intrinsic value estimate suggesting roughly a 32% discount, the key question is simple: is Under Armour still mispriced, or is the market already baking in future growth?

Most Popular Narrative: 32% Undervalued

With Under Armour last closing at $7.62 against a widely followed fair value of $7.73, the narrative frames the stock as modestly mispriced while hinging on a brand and margin reset that still has to play out.

The ongoing transformation to a brand first strategy, with a focus on premiumization, tighter SKU assortments, and greater brand storytelling, positions Under Armour to increase average selling prices, improve full price sell through, and reduce reliance on discounting, which should positively impact net margins and long term earnings growth.

Read the complete narrative.

Curious what kind of revenue path and margin rebuild support that fair value, and how rich the future earnings multiple needs to be to make the math work? The most followed narrative sets out specific growth, profitability and discount rate assumptions that go well beyond a simple tariff or sentiment story.

Result: Fair Value of $7.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear pressure points, including guidance for a 4% revenue decline with an operating loss of about US$154 million, which could challenge the margin recovery story.

Find out about the key risks to this Under Armour narrative.

Next Steps

If this combination of tariff risk, brand reset and fair value analysis seems finely balanced, act while the data is fresh. Test the numbers yourself, and then weigh that against 3 key rewards.

Looking for more investment ideas?

You have seen how one stock story can change fast, so do not stop here. Use this momentum to broaden your watchlist with fresh opportunities.

• Act on value by reviewing our list of 56 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their potential.
• Secure your income stream by scanning 15 dividend fortresses that focus on higher yield payers for investors who care about regular cash returns.
• Strengthen your defense by checking 80 resilient stocks with low risk scores that concentrate on companies with lower risk profiles when you want to limit unwelcome surprises.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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