Foot Locker, Inc.
) is well set on the growth trajectory, given the momentum the
stock has garnered, positive earnings surprise history, and
strong fundamentals. So far in the year, shares of this athletic
footwear and apparel retailer, has surged nearly 13% backed by
its impressive financials and solid quarterly results.
Driven by significant initiatives undertaken towards achieving
its long-term goals, the company recently posted record
fourth-quarter and fiscal 2013 results where its quarterly
adjusted earnings of 82 cents soared 28% year over year,
substantially ahead of the Zacks Consensus Estimate of 75 cents.
For the full year, the company's earnings witnessed a
double-digit rise for the fourth time in a row.
On an average, this Zacks Rank #2 (Buy) stock has delivered a
positive earnings surprise of 21.6% over the past 14 quarters,
making investors constructive on the stock's performance.
Providing further impetus to the stock is its sales performance
for the quarter that escalated 4.6% year over year to $1,791
million, benefiting from a 5.3% rise in comparable-store sales.
Apart from delivering strong top and bottom lines, the company is
also known for its shareholder-friendly moves. In fiscal year
2013 the company bought back 6.4 million shares worth $229
million, which includes 1.6 million shares, repurchased in the
Additionally, management hiked its quarterly dividend by 10% to
22 cents a share and also approved a capital expenditure worth
$220 million for fiscal 2014. This further instills confidence
among investors as dividend hikes reflect a company's sound
financial position and healthy cash flows.
The above catalysts facilitated the stock to hit a 52-week high
of $46.94 on March 21, 2014, before eventually closing at $45.84.
The stock currently trades at a forward P/E of 14.4x, a 12.2%
discount to the peer group average of 16.4x, hinting at further
upside potential. Moreover, its last trading price is 10.9% below
the Zacks Analyst Price target of $51.44.
The company seems quite impressed with its performance in fiscal
2013. Also, it believes that by continuing to exploit
opportunities like children's business, its shop-in-shop
expansion in collaboration with its vendors, development of its
store banner.com and enhancement of its assortments, it is likely
to scale new heights in the coming years.
Going forward, Foot Locker expects to work on its store
restructuring plans, increase its investments in technology in
Europe and also further its women's business, which makes
management optimistic of achieving its operational objectives.
Apart from Foot Locker,
Hill International, Inc.
) also hit 52 week highs of $43.61, $80.52 and $5.09,
respectively on the last trading day.
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