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 strong on high relative 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 $101.8 million.
- FL has traded 316,341 shares today.
- FL is trading at 2.04 times the normal volume for the stock at this time of day.
- FL is trading at a new high 3.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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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 1.5%. FL has a PE ratio of 17.6. Currently there are 10 analysts that rate Foot Locker a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Foot Locker has been 1.6 million shares per day over the past 30 days. Foot Locker has a market cap of $8.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.00 and a short float of 2.5% with 2.28 days to cover. Shares are up 35.3% year-to-date as of the close of trading on Thursday.
rates Foot Locker as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.0%. Since the same quarter one year prior, revenues rose by 12.9%. 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.
- Powered by its strong earnings growth of 43.18% and other important driving factors, this stock has surged by 70.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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 43.2% 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 ($3.45 versus $2.85).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 39.4% when compared to the same quarter one year prior, rising from $66.00 million to $92.00 million.
- You can view the full Foot Locker Ratings Report.