Amer Sports: RS Momentum Builds as Penetration Rate Accelerates Growth

Amer Sports (AS) stock's Relative Strength (RS) Rating improved to 73 from 67, reflecting modest technical strength but lingering below the 80 threshold that signals robust momentum. This move suggests Amer is outperforming many peers in the crowded athletic goods space, though it still has ground to cover before reaching the level that typically attracts aggressive momentum investors. The RS Rating's climb came on heavier trading volume, hinting at renewed investor interest that could help push the stock closer to the key resistance zone.

The stock closed at $37.13 on Nov. 28, 2025, up 0.47%, and tested resistance at $38.00 after breaking a long-term falling trend-an encouraging sign for bulls if it can sustain a move above that level. Short-term volatility sits at 2.30% and liquidity at 57.27, underscoring mixed sentiment in the immediate term. Over the past five days and 22 days, Amer showed positive price growth of 8.09% and 13.13%, respectively, indicating some short-term momentum building.

However, investors should note that resistance at $38 has historically held, with prior reversals limiting upside. A breakout above that level would be needed to confirm a meaningful trend shift, but until then, the stock remains vulnerable to pullbacks. While the RS Rating bounce and recent price action provide technical validation of the growth thesis, the lack of a confirmed breakout means the bull case still hinges on broader market sentiment and execution of Amer's turnaround plan.

Penetration Rate and Segment Strength Sustain Momentum

Amer Sports' latest quarter demonstrated robust momentum, driven by strong market penetration and leadership in key segments. Direct-to-consumer (DTC) sales proved particularly potent, surging 51% year-over-year and now representing 41% of total revenue. This significant jump in the DTC mix signals deeper customer engagement and higher-value channel penetration. Regional expansion was equally impressive, with Greater China growing 47% and Asia Pacific soaring 54% year-over-year. These figures highlight the company's successful strategy in expanding its footprint in high-growth markets.

Segment leadership continued to fuel growth, with Outdoor Performance and Technical Apparel reporting particularly strong results. This broad-based strength across core categories underpins the revenue surge. The scale of this growth is evident in the revenue figure itself, which reached nearly $1.76 billion for the quarter. While this expansion was fueled by strong demand, Amer Sports faced rising costs; specifically, increased SG&A expenses pressured margins, though efficiency improvements managed to expand adjusted operating margins by 130 basis points to 15.7% overall. The company's ability to raise full-year guidance reflects confidence in sustaining this momentum, although managing these cost pressures will be critical for maintaining margin gains in the coming quarters.

Risk & Guardrails: Technical Breakout and Execution Uncertainties

Amer Sports (AS) shares fell short of clearing the critical $38 resistance level, capping near-term upside potential and signaling technical vulnerability. According to market analysis, the stock closed at $37.13 on November 28, 2025, testing this barrier after breaking a long-term downtrend but failing to sustain above it. This resistance wall reflects persistent selling pressure near $38, where the stock has reversed direction in prior attempts.

Meanwhile, operational challenges emerged in Q2 2025 results. According to financial results, revenue grew 23% year-over-year, driven largely by strong demand in the Outdoor Performance segment. But Ball & Racquet Sports-home to brands like Wilson-showed margin compression with only 3-4% growth, lagging the division's overall revenue expansion. This divergence highlights pricing pressures and cost headwinds in a segment critical to the company's premium positioning. Inventory rose sharply 29% to $1.597 billion, compounding concerns about demand balance.

The technical resistance at $38 and Ball & Racquet's margin struggles create dual headwinds. Breaking the $38 barrier is essential to unlock further gains, yet segment-specific pricing weakness raises questions about sustainability. Investors should monitor both technical breakthroughs and margin trends in Ball & Racquet as key indicators of the company's resilience.

Re-Rating Potential and Operational Validation

Amer Sports (AS) has surged 41.6% year-to-date, significantly outperforming broader markets. This rally lifted the share price to current levels with a $45.23 analyst price target representing 21% upside. However, the stock now shows classic overbought signals, with its Relative Strength Index at 72.08-a level suggesting the recent momentum may be exhausted. The company's financial structure adds another layer of risk, carrying $1.87 billion in debt that could constrain future shareholder returns if not managed.

Operating performance provides counterbalance to these valuation concerns. Q3 results revealed a 30% revenue jump to $1.756 billion, driven by double-digit growth across all regions. Crucially, this top-line strength translated into margin expansion. Adjusted operating margins improved 130 basis points to 15.7%, reflecting better cost control and product mix, while gross margins surged 240 basis points to 57.9%. Management's decision to raise full-year revenue and margin guidance further validates the sustainability of these gains.