Foot Locker (FL) shares were was climbing 1.65% to $70.87 early Thursday afternoon ahead of the release of the sports apparel retailer's third quarter earnings before the opening bell on Friday.
The New York City-based company is expected to report earnings of $1.10 per share on revenue of $1.89 billion, according to analysts polled by FactSet. Wall Street expects the company to report same store sales growth of 5% over the year ago period.
Last week analysts at Wedbush reiterated their $80 price target and "outperform" rating on the stock.
"We believe FL's global dominance in athletic footwear and the ability to navigate and adapt to consumer preferences will likely continue to drive sales and earnings growth for the foreseeable future," analyst Christopher Svezia wrote in the note.
Additionally, the firm believes that as vendors like adidas (ADDYY) and Under Armour (UA) aggressively compete to take market share from industry leader Nike (NKE) , sneaker retailers like Foot Locker stand to benefit.
"It is our view that the market share dynamics in the U.S., and to a degree around the globe, are positive for FL. Brands are aggressively fighting for shelf space with relevant product and key marketing support, which we view as a positive for FL," Svezia wrote.
Canaccord Genuity analysts Camilo Lyon and Pallav Saini have a similar take on Foot Locker, reiterating their "buy" rating and $79 price target.
"Overall, we are expecting a solid Q3, and similarly positive commentary regarding Q4 trends," the analysts recently wrote. "With solid category trends, increasing allocations of hot product from all brands, average selling price tailwinds, and internal comp drivers, we reiterate our 'buy' rating."
While Foot Locker looks good ahead of their earnings report and its chart shows positive fundamentals, the stock appears to be overbought, according to TheStreet contributor Richard Suttmeier.
Trading at less than 10% below its all-time high, Foot Locker is nearly in correction territory, according to Suttmeier.
"Investors looking to buy Foot Locker should consider buying weakness to $62.66 and $57.86, which are key levels on technical charts until the end of November and until the end of 2016, respectively," Suttmeier wrote. "Investors looking to reduce holdings should consider selling strength to $72.81 and $76.88, which are key levels on technical chart until the end of 2016."