New York City-based Foot Locker, Inc. (FL - Free Report) looks promising, backed by its strong brand recognition, solid third-quarter fiscal 2016 results and innovative strategies, all underscoring its inherent strength.
Driven by these factors, this Zacks Rank #3 (Hold) company hit a 52-week high of $74.74 on Nov 25, though it eventually closed lower at $73.93. Also, the stock has surged nearly 35.1% in the past six months.
Foot Locker is one of the widely recognized names in the athletic footwear and apparel industry. The company boasts a strong portfolio of leading brands under a variety of store banners that helps it to target specific markets and effectively meet consumer demand.
Sturdy comparable-store sales performance and cost containment efforts helped Foot Locker to continue registering year-over-year growth in both the top and bottom lines in third-quarter fiscal 2016. Moreover, the stellar performance was backed by effective implementation of its operational and financial initiatives. (Read more: Foot Locker Posts Positive Q3 Earnings Surprise)
International expansion, especially in Europe, is another growth catalyst. Also, Foot Locker is focused on augmenting its eCommerce platform, growing direct-to-consumer operations, margin expansion and tapping underpenetrated markets. Further, the company is actively managing its cash flows − via investment in new store openings, remodeling projects, digital capabilities as well as shareholder-friendly moves.
Additionally, we note that continuous exploitation of opportunities such as kids’ and women’s business, shop-in-shop expansion, store refurbishment and enhancement of assortments are likely to benefit the company, going forward. However, a competitive retail landscape, fashion obsolescence and foreign currency headwinds remain concerns.
Apart from Foot Locker, Fresh Del Monte Produce Inc. also hit a 52-week high of $66.86.
Stocks that Warrant a Look
Some better-ranked stocks in the same industry include The Children's Place, Inc. (PLCE - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .
The Children's Place, with a long-term earnings growth rate of 10.3%, has jumped nearly 91.4% year to date. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn, with a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 14.5%. The stock has soared 120.3% in the past six months.
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