In the latest trading session, Foot Locker (FL) closed at $52.18, marking a -0.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the shoe store had gained 3.18% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.09% and the S&P 500's loss of 4.99% in that time.
Wall Street will be looking for positivity from FL as it approaches its next earnings report date. This is expected to be March 1, 2019. The company is expected to report EPS of $1.35, up 7.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, down 2.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $7.84 billion, which would represent changes of +9.49% and +0.69%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for FL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.1% higher within the past month. FL is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, FL is currently trading at a Forward P/E ratio of 11.66. This valuation marks a discount compared to its industry's average Forward P/E of 13.61.
It is also worth noting that FL currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.