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Should Value Investors Buy Foot Locker (FL) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.66. This compares to its industry's average Forward P/E of 14.75. Over the past year, FL's Forward P/E has been as high as 12.85 and as low as 9.08, with a median of 11.10.
Investors should also note that FL holds a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FL's PEG compares to its industry's average PEG of 1.43. Within the past year, FL's PEG has been as high as 2.28 and as low as 1.18, with a median of 1.56.
Another valuation metric that we should highlight is FL's P/B ratio of 2.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FL's current P/B looks attractive when compared to its industry's average P/B of 3.54. FL's P/B has been as high as 2.90 and as low as 1.93, with a median of 2.48, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Foot Locker is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FL feels like a great value stock at the moment.
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Should Value Investors Buy Foot Locker (FL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.66. This compares to its industry's average Forward P/E of 14.75. Over the past year, FL's Forward P/E has been as high as 12.85 and as low as 9.08, with a median of 11.10.
Investors should also note that FL holds a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FL's PEG compares to its industry's average PEG of 1.43. Within the past year, FL's PEG has been as high as 2.28 and as low as 1.18, with a median of 1.56.
Another valuation metric that we should highlight is FL's P/B ratio of 2.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FL's current P/B looks attractive when compared to its industry's average P/B of 3.54. FL's P/B has been as high as 2.90 and as low as 1.93, with a median of 2.48, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Foot Locker is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FL feels like a great value stock at the moment.