Summary
- The Consumer Discretionary ETF led sector performance last week, driven by strong economic data.
- Under Armour is set to release its FY Q3 2024 report amid weak momentum and underperformance compared to competitors.
- UA’s valuation is favorable, but growth trends are uncertain, and technical indicators suggest a bearish trend.
- I highlight the expected earnings-related stock moves and key prices on the chart.
Strong economic data last week helped send the Consumer Discretionary ETF, Consumer Discretionary Select Sector SPDR Fund ETF (XLY) to the leading sector performance slot. That is a generally risk-on indicator, though cyclical areas like Real Estate and Energy underperformed amid a late-week burst higher in interest rates. Earnings season broadens out this week, including Q4 figures from some retail-related companies.
Under Armour, Inc. (NYSE:UA) issues its Q3 2024 report Thursday morning. The stock has been a chronic “Under Performer” in the last two-plus years as it loses out to other athletic apparel companies. I have a hold rating on shares given a decent valuation, but a weak momentum situation.
