NEW YORK (TheStreet) -- Shares of Foot Locker (FL) - Get Report were lower in early afternoon trading on Wednesday as Cowen said the New York-based athletic retailer could benefit as Nike (NKE) loses some of its dominance in the North American sports apparel market, Barron's notes.
"We think the North American market in particular is being impacted by the brand resurgence of Adidas (ADDYY) given its increasing visibility and strong product cycle, and ongoing competition with Under Armour (UA)," the firm noted.
Although athletic apparel maker Nike reported better-than-expected earnings and revenue for the quarter late yesterday, the company posted downbeat futures orders.
Cowen noted that although Nike's North American revenues increased 6% in the first quarter of fiscal 2017, growth was lower than the same period last year.
"Foot Locker, Finish Line (FINL) and Dick's Sporting Goods (DKS) should all benefit from the ongoing athletic cycle and increased brand diversity, lessening reliance, to some degree, on Nike," the firm said, Barron's adds.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
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, reasonable valuation levels, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: FL