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Is Foot Locker (FL) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Foot Locker (FL - Free Report) . FL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.35, which compares to its industry's average of 15.87. Over the past 52 weeks, FL's Forward P/E has been as high as 18.51 and as low as 7.18, with a median of 11.11.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FL has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.75.

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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