• In May 2026, Fairfax Financial’s Prem Watsa accumulated nearly 1.2 million Under Armour shares in structured blocks below US$5, coinciding with the company’s recent streak of four consecutive quarterly earnings beats and rapid international expansion.
• This combination of a high-profile value investor buying in size and management guiding to the first positive adjusted EPS in fiscal 2027 highlights growing confidence in Under Armour’s turnaround efforts despite ongoing North American weakness and a heavy debt load.
• Now we’ll explore how Prem Watsa’s sizeable stake-building activity may influence Under Armour’s existing investment narrative and turnaround assumptions.

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Under Armour Investment Narrative Recap

To own Under Armour today, you have to believe the company can translate its operational reset and international momentum into durable profitability, even as North America stays soft and debt remains a constraint. Prem Watsa’s roughly 1.2 million share purchase under US$5 reinforces confidence in that turnaround story, but it does not remove the near term risk that margin pressure and weak regional demand could blunt the impact of any upcoming earnings catalyst.

The most relevant recent announcement here is management’s outlook for the first positive adjusted EPS in fiscal 2027, paired with guidance for modest international growth and improving gross margins. Watsa’s buying activity sits against that backdrop, reinforcing the idea that Under Armour’s path back to profitability is central to the thesis while also putting a spotlight on whether ongoing revenue declines and losses in FY 2026 will shorten or stretch the expected timeline.

Yet behind the optimism, investors should be aware that ongoing tariff and supply chain pressures could still...

Under Armour's narrative projects $5.5 billion revenue and $224.5 million earnings by 2029. This requires 3.2% yearly revenue growth and a $744.2 million earnings increase from -$519.7 million today.

Uncover how Under Armour's forecasts yield a $7.73 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts paint a much harsher picture, assuming roughly flat revenue near US$5.1 billion and only US$131 million of earnings by 2028, which contrasts sharply with the more optimistic turnaround case and highlights how widely views can differ, especially before factoring in Watsa’s recent stake build and what it might mean for these assumptions.

Explore 7 other fair value estimates on Under Armour - why the stock might be worth less than half the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Under Armour research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Under Armour research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Under Armour's overall financial health at a glance.

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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.