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Should Value Investors Buy Foot Locker (FL) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.21, which compares to its industry's average of 14.46. Over the past year, FL's Forward P/E has been as high as 18.51 and as low as 6.72, with a median of 11.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FL has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.69.
These are only a few of the key metrics included in Foot Locker's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FL looks like an impressive value stock at the moment.
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Should Value Investors Buy Foot Locker (FL) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.21, which compares to its industry's average of 14.46. Over the past year, FL's Forward P/E has been as high as 18.51 and as low as 6.72, with a median of 11.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FL has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.69.
These are only a few of the key metrics included in Foot Locker's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FL looks like an impressive value stock at the moment.