Foot Locker (FL) Weak In Early Morning Trading
Trade-Ideas LLC identified
(
) as a pre-market laggard 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 $180.7 million.
- FL traded 59,417 shares today in the pre-market hours as of 8:34 AM.
- FL is down 3.5% today from yesterday's close.
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More details on FL:
Foot Locker, Inc. operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The stock currently has a dividend yield of 1.9%. FL has a PE ratio of 15. Currently there are 12 analysts that rate Foot Locker a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Foot Locker has been 3.2 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 0.57 and a short float of 15% with 6.32 days to cover. Shares are down 12.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Foot Locker as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- FOOT LOCKER INC has improved earnings per share by 12.9% 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 $3.84 versus $3.56 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $3.84).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 8.2% when compared to the same quarter one year prior, going from $146.00 million to $158.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 5.0%. 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. To add to this, FL has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Foot Locker Ratings Report.
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