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The Zacks Retail and Wholesale has struggled in 2022, down more than 20% and underperforming the S&P 500 by a fair margin.
Foot Locker (FL - Free Report) , a company in the sector, is on deck to unveil Q3 earnings on November 18th, before the market open.
Foot Locker is a retailer of athletic shoes and apparel, operating websites and mobile apps aligned with the brand names of store banners.
Currently, the retailer carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a D.
How does everything else shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
FL shares have witnessed large price swings in 2022, down roughly 24% and lagging behind the S&P 500.
Image Source: Zacks Investment Research
Over the last month, FL shares have continued to lag behind the general market, down a marginal 1% vs. the S&P 500’s 8% gain.
Image Source: Zacks Investment Research
FL shares currently trade at a 7.8X forward earnings multiple, nicely beneath the 10.2X five-year median and representing a steep 69% discount relative to the Zacks Retail and Wholesale sector.
Foot Locker sports a Value Style Score of an A.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with five negative earnings estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $1.10 indicates a 43% Y/Y decrease in quarterly earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to contract modestly as well; the Zacks Consensus Sales Estimate of $2.1 billion suggests a Y/Y decline of roughly 3.3%.
Quarterly Performance
Foot Locker is on a strong earnings streak, exceeding the Zacks Consensus EPS Estimate in nine consecutive quarters. Just in its latest print, the retailer registered a steep 47% bottom-line beat.
Top-line results have also been strong, with FL exceeding revenue estimates in seven of its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
FL shares have underperformed the general market across several timeframes in 2022, indicating that sellers have had a tight grip.
The company’s forward earnings multiple is well below its five-year median and Zacks Retail and Wholesale sector average.
Analysts have lowered their earnings outlook over the last few months, with estimates indicating Y/Y declines in both revenue and earnings.
The company has consistently exceeded quarterly estimates, with a double-digit percentage EPS beat coming in its latest release.
Heading into the print, Foot Locker (FL - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 6.8%.
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Foot Locker Q3 Preview: Can Shares Rebound?
The Zacks Retail and Wholesale has struggled in 2022, down more than 20% and underperforming the S&P 500 by a fair margin.
Foot Locker (FL - Free Report) , a company in the sector, is on deck to unveil Q3 earnings on November 18th, before the market open.
Foot Locker is a retailer of athletic shoes and apparel, operating websites and mobile apps aligned with the brand names of store banners.
Currently, the retailer carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a D.
How does everything else shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
FL shares have witnessed large price swings in 2022, down roughly 24% and lagging behind the S&P 500.
Image Source: Zacks Investment Research
Over the last month, FL shares have continued to lag behind the general market, down a marginal 1% vs. the S&P 500’s 8% gain.
Image Source: Zacks Investment Research
FL shares currently trade at a 7.8X forward earnings multiple, nicely beneath the 10.2X five-year median and representing a steep 69% discount relative to the Zacks Retail and Wholesale sector.
Foot Locker sports a Value Style Score of an A.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with five negative earnings estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $1.10 indicates a 43% Y/Y decrease in quarterly earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to contract modestly as well; the Zacks Consensus Sales Estimate of $2.1 billion suggests a Y/Y decline of roughly 3.3%.
Quarterly Performance
Foot Locker is on a strong earnings streak, exceeding the Zacks Consensus EPS Estimate in nine consecutive quarters. Just in its latest print, the retailer registered a steep 47% bottom-line beat.
Top-line results have also been strong, with FL exceeding revenue estimates in seven of its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
FL shares have underperformed the general market across several timeframes in 2022, indicating that sellers have had a tight grip.
The company’s forward earnings multiple is well below its five-year median and Zacks Retail and Wholesale sector average.
Analysts have lowered their earnings outlook over the last few months, with estimates indicating Y/Y declines in both revenue and earnings.
The company has consistently exceeded quarterly estimates, with a double-digit percentage EPS beat coming in its latest release.
Heading into the print, Foot Locker (FL - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 6.8%.