Foot Locker (FL): Heavy Pre-Market Activity
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Foot Locker as such a stock due to the following factors:
- FL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $118.7 million.
- FL traded 374,592 shares today in the pre-market hours as of 9:09 AM, representing 18.7% of its average daily volume.
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More details on FL:
Foot Locker, Inc., together with its subsidiaries, operates as a retailer of athletic footwear and apparel. The company operates in two segments, Athletic Stores and Direct-to-Customers. The stock currently has a dividend yield of 1.8%. FL has a PE ratio of 16.8. Currently there are 11 analysts that rate Foot Locker a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Foot Locker has been 2.1 million shares per day over the past 30 days. Foot Locker has a market cap of $8.0 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.13 and a short float of 8.2% with 5.90 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Foot Locker as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.01% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- FOOT LOCKER INC has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FOOT LOCKER INC increased its bottom line by earning $2.85 versus $2.59 in the prior year. This year, the market expects an improvement in earnings ($3.48 versus $2.85).
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.5%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FL's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- You can view the full Foot Locker Ratings Report.
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