Foot Locker (FL) Reaches New Lifetime High Today

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 Foot Locker ( FL) 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 $86.0 million.
  • FL has traded 1.7 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 2.1%. FL has a PE ratio of 13.8. Currently there are 8 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 1.9 million shares per day over the past 30 days. Foot Locker has a market cap of $5.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.81 and a short float of 2.4% with 1.78 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Foot Locker as a buy. 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, attractive valuation levels, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.7%. 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.
  • FOOT LOCKER INC's earnings per share improvement from the most recent quarter was slightly positive. 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).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, FOOT LOCKER INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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