Foot Locker, Inc.
) touched a new 52-week high of $40.13 on Dec 18, 2013 and
eventually closed trade at $40.05. The stock gained momentum from
the company's better-than-expected third-quarter fiscal 2013
results. This apparel-footwear and accessories retailer amassed a
year-to-date return of roughly 30%.
The company currently trades at a forward P/E of 14.36x, a 12.1%
discount to the peer group average of 16.34x. The last traded
price is 7.3% below the Zacks Consensus average analyst price
target of $43.22. Additionally, the company's long-term estimated
earnings per share growth rate is 9.5%.
Investors are betting on this Zacks Rank #3 (Hold) stock that
recently became an official partner of the National Basketball
Association in Canada by entering into a multi-year marketing
Further, Foot Locker's history of positive earnings surprises
keep investors optimistic about its future performance. We
observe that the company has beaten the Zacks Consensus Estimate
in the past 7 quarters by an average of 5.2%. In the last
reported quarter it delivered a positive surprise of 1.5%.
The company posted third-quarter earnings of 68 cents a share
that came a penny ahead of the Zacks Consensus Estimate and rose
7.9% year over year. Driven by solid comparable-store sales
performance, Foot Locker's sales for the quarter rose 6.4% year
over year to $1,622 million and handily surpassed the Zacks
Consensus Estimate of $1,586 million.
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The year-over-year bottom-line growth was primarily driven by
strong top-line performance, effective cost management and lower
Foot Locker's expansion strategy is also impressive. The company
opened 28 stores and remodeled/relocated 118 stores, while it
shut 13 stores during the third quarter. Foot Locker operated
approximately 3,500 stores across 23 countries in North America,
Europe, Australia and New Zealand. Apart from this, the company
has 45 franchised Foot Locker stores in the Middle East and South
Africa. Moreover, in Germany and Switzerland, Foot Locker has 27
franchised Runners Point and Sidestep stores.
Apart from Foot Locker, other stocks such as
Brown Shoe Co. Inc.
The Walt Disney Company
Under Armour, Inc.
) achieved new 52-week highs of $27.50, $72.20 and $86.59,