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 new lifetime high 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 $80.7 million.
- FL has traded 3.3 million shares today.
- FL is trading at a new lifetime high.
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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 2.2%. FL has a PE ratio of 13.7. Currently there are 8 analysts that rate Foot Locker a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Foot Locker has been 1.8 million shares per day over the past 30 days. Foot Locker has a market cap of $5.5 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.73 and a short float of 2.4% with 1.75 days to cover. Shares are up 15.2% year to date as of the close of trading on Wednesday.
rates Foot Locker as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these 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 12.8% 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 $2.59 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $2.59).
- FL's revenue growth trails the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FL's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Foot Locker Ratings Report.