We recently published a list of Jim Cramer’s Latest Portfolio Heading Into 2025: Top 10 Stocks. In this article, we are going to take a look at where Under Armour Inc (NYSE:UAA) stands against other stocks in Jim Cramer’s latest portfolio heading into 2025.
Jim Cramer in a latest program reiterated his view that the market is currently oversold and told investors about his methodology of analyzing market selling and buying indicators based on an oscillator.
“Once it touches minus 5, you need to hold your nose and start buying, no matter how bad it looks. Minus 5 means we’re oversold and due for a bullish bounce. When the oscillator goes below minus 8, as it did last night, the only thing you can do is buy hand over fist. Under no circumstances should you sell with the oscillator below minus 8 because, at that point, the selling ship has sailed. The odds are against you if you sell into an extremely oversold market.”
Cramer then mentioned a few historical data points explaining the returns one could get if one invests when the market is in the oversold territory.
“If you bought the S&P 500 Index when the oscillator hit minus 8, you would have averaged a 2.88% gain within the next 30 days. That’s over a 10-year period, with the median up 4.7%. It gets even better 60 days out— the average gain was 8.93%, and the median was over 9%. Those are some huge moves. How about the odds? Thirty days after the oscillator hits minus 8, as it did last night, the market was up 70% of the time. Sixty days after, the market was up 80% of the time. That’s an extraordinarily reliable pattern, people. Nothing in the market is a sure thing, of course, but the frequency of those gains means the odds are heavily in your favor if you buy in an oversold market this time.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each company, we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Under Armour Inc (NYSE:UAA)
Number of Hedge Fund Investors: 28
Talking about Under Armour Inc (NYSE:UAA), Cramer recommended investors to be careful as Nike prepares to make a turnaround:
“I think it’s a great spec. We have to have a couple of quarters that are good. Remember, Nike just had a real hard time. Hard to imagine everybody doing well if Nike’s coming back with a vengeance. So let’s be careful, but it is a spec and a good one.”
Under Armour Inc (NYSE:UAA) recently outlined its long-term merchandising strategy and reaffirmed its financial outlook for FY25.
“As a global Sports House – capable of equipping athletes head to toe on and off the field, pitch, or court – we are hard at work putting in place the people, structures, and strategies essential to realizing Under Armour full potential over the long-term,” CEO Kevin Plank stated during Thursday’s investor meeting in New York City.
For the current fiscal year, Under Armour Inc (NYSE:UAA) now expects to earn between $0.24 and $0.27 per share, up from its previous guidance of $0.19 to $0.21 per share, and exceeding the consensus estimate of $0.23.
Under Armour Inc (NYSE:UAA) product strategy centers on streamlining its creation process, launching major marketing campaigns to boost brand awareness, revitalizing its focus on Team Sports to engage young athletes, growing brand recognition in EMEA and Asia-Pacific, and motivating employees, all while improving efficiency within its leadership teams.
“With a significantly strengthened product lineup coming in Fall 2025, a clear underdog brand positioning, and purposeful, disciplined marketplace management, I am confident that our actions are gaining traction,” Plank added.
Rowan Street Capital made the following comment about Under Armour, Inc. (NYSE:UA) in its second quarter 2023 investor letter:
“Now, the bottom 3 performers from all the companies that we’d sold were Docusign (DOCU) -76%, TripAdvisor (TRIP) -59% and Under Armour, Inc. (NYSE:UA) -57%. These represent the losses we would have incurred had we held on to these positions until now. We must note that all 3 of these were sold for purely fundamental reasons and we ended up being correct on all of them.”
Overall, UAA ranks 9th on our list of Jim Cramer’s latest portfolio heading into 2025. While we acknowledge the potential of UAA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UAA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.