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Foot Locker (FL) Outpaces Stock Market Gains: What You Should Know

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Foot Locker (FL - Free Report) closed the most recent trading day at $57.74, moving +1.98% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day.

Coming into today, shares of the shoe store had lost 7.59% in the past month. In that same time, the Retail-Wholesale sector lost 3.19%, while the S&P 500 gained 1.65%.

Investors will be hoping for strength from FL as it approaches its next earnings release, which is expected to be August 20, 2021. In that report, analysts expect FL to post earnings of $1.06 per share. This would mark year-over-year growth of 49.3%. Our most recent consensus estimate is calling for quarterly revenue of $2.02 billion, down 2.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.77 per share and revenue of $8.51 billion, which would represent changes of +105.34% and +12.74%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for FL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. FL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note FL's current valuation metrics, including its Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 16.92, which means FL is trading at a discount to the group.

It is also worth noting that FL currently has a PEG ratio of 2.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.35 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 106, putting it in the top 42% 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.

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