12 Best Consumer Discretionary Stocks to Buy According to Analysts

6. Under Armour Inc. (NYSE:UA)

Upside Potential: 51%

Number of Hedge Fund Holders: 28

Under Armour Inc. (NYSE:UA) is a sports apparel, accessories and footwear company known for its innovative performance products. The brand focuses on providing high-quality athletic gear designed to enhance performance and comfort for athletes and fitness enthusiasts.

On February 6, 2025, Under Armour Inc. (NYSE:UA) reported better-than-expected Q3 2025 results (FY ending March 2025) with revenue of $1.4 billion (-6% YoY). Revenue was better than street expectations but still was in decline because of weakness in both North American and International markets, partially balanced by 5% rise in revenue in Europe, Middle East, and Africa (EMEA). While Apparel and Footwear revenue declined 5% and 9%, respectively, Accessories posted a 6% growth. Encouragingly, the company was able to expand its gross margin by 240 basis point to 47.5%, which helped it report an adjusted EPS of $0.08. Under Armour Inc. (NYSE:UA) raised its fiscal 2025 outlook, now anticipating a revenue decline of approximately 10%, an improvement from the previously expected decline of low double-digit percentage. The company also projects a gross margin increase of about 160 basis points, up from the prior estimate of 125-150 basis points. Overall, the results are a testimony to positive impact from its turnaround strategy through which it plans to reduce costs and solidify its brand strength in the long-term.

On February 7, a UBS analyst reiterated his Buy rating on Under Armour Inc. (NYSE:UA) with an unchanged price target of $15. The analyst believes the company is successfully revamping its operations, as evidenced by their third-quarter performance showing positive trends. He is optimistic about the company’s transformation initiatives, innovation platform, and effective cost management strategies. He also expects Under Armour Inc. (NYSE:UA)’s growth to potentially surprise the market, leading to improved market sentiment from current low levels.