Why Under Armour Stock Is Setting Up for a Bull Run

One of the top athletic apparel brands has been a lousy investment over the last 10 years. Shares of Under Armour (NYSE: UA) (NYSE: UAA) are down 28% since April 2012, underperforming the S&P 500 return of 209%. But the stock could be set for much better showing over the next decade.

Under CEO Patrik Frisk, who took over in Jan. 2020 for company founder Kevin Plank, Under Armour has gotten itself in fighting shape. Revenue and margins are rising, and its disciplined approach to managing costs could be rewarded with a higher stock price soon enough.

Frisk is pushing all the right buttons to give investors reasons to invest in this recovering athletic wear brand. In his letter to shareholders in March 2022, he said: "We are intentional in creating and pulling levers that drive our profitability." Management's actions back this up. Less than a year after Frisk took over as CEO, Under Armour sold its MyFitnessPal platform for $345 million to Francisco Partners. The sale of the digital fitness subscription business got Under Armour more focused on delivering growth where it matters.

Source Fool.com