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Can Foot Locker's Strategic Efforts Retain Growth Trend?
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Appealing stocks are those which continue with their momentum and remain investors’ favorite. Foot Locker, Inc. (FL - Free Report) is one such stock that looks quite promising on the back of its strong brand recognition, sturdy fundamentals and strategic initiatives.
Foot Locker has exhibited a bullish run in the index. So far in 2016, this Zacks Rank #2 (Buy) stock has increased roughly 17% compared with the Zacks categorized Retail–Apparel/Shoe industry that has declined 5.6%. Yesterday, the stock hit a 52-week high of $76.06 and we believe there still much momentum left in the stock, which is quite evident from its VGM Score of “A” and long-term earnings growth rate of 9.9%.
Growth Catalysts
Foot Locker is one of the most widely recognized names in the athletic footwear and apparel industry. The company boasts a solid portfolio of leading brands under a variety of store banners, which helps it to target specific markets and effectively meet consumer demand. We believe that continuous exploitation of opportunities, such as children’s business, shop-in-shop expansion, store refurbishment and enhancement of assortments, are likely to benefit the company, going forward.
Expanding its global footprint, particularly in Europe, also constitutes as a growth catalyst. Further, Foot Locker is focused on improving its eCommerce platform, growing direct-to-consumer business, margin expansion and tapping underpenetrated markets.
The strategic endeavors have aided Foot Locker to post positive earnings surprise for the second straight quarter, as it reported third-quarter fiscal 2016 results. In addition, both earnings and revenues increased year over year. Results were backed by sturdy comparable-store sales performance, cost containment efforts and effective implementation of its operational and financial initiatives. (Read more: Foot Locker Posts Positive Q3 Earnings Surprise)
Consequently, management reaffirmed its projection of a mid-single-digit increase in comps in fiscal 2016. Further, it continues to expect double-digit growth in earnings per share for fiscal 2016.
Best Buy, with a long-term earnings growth rate of 11.9%, has jumped 53.8% year to date.
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained roughly 91.8% year to date.
Tilly’s, with a long-term earnings growth rate of 15.5%, has surged a whopping 125.2% in the past six months.
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Can Foot Locker's Strategic Efforts Retain Growth Trend?
Appealing stocks are those which continue with their momentum and remain investors’ favorite. Foot Locker, Inc. (FL - Free Report) is one such stock that looks quite promising on the back of its strong brand recognition, sturdy fundamentals and strategic initiatives.
Foot Locker has exhibited a bullish run in the index. So far in 2016, this Zacks Rank #2 (Buy) stock has increased roughly 17% compared with the Zacks categorized Retail–Apparel/Shoe industry that has declined 5.6%. Yesterday, the stock hit a 52-week high of $76.06 and we believe there still much momentum left in the stock, which is quite evident from its VGM Score of “A” and long-term earnings growth rate of 9.9%.
Foot Locker is one of the most widely recognized names in the athletic footwear and apparel industry. The company boasts a solid portfolio of leading brands under a variety of store banners, which helps it to target specific markets and effectively meet consumer demand. We believe that continuous exploitation of opportunities, such as children’s business, shop-in-shop expansion, store refurbishment and enhancement of assortments, are likely to benefit the company, going forward.
Expanding its global footprint, particularly in Europe, also constitutes as a growth catalyst. Further, Foot Locker is focused on improving its eCommerce platform, growing direct-to-consumer business, margin expansion and tapping underpenetrated markets.
The strategic endeavors have aided Foot Locker to post positive earnings surprise for the second straight quarter, as it reported third-quarter fiscal 2016 results. In addition, both earnings and revenues increased year over year. Results were backed by sturdy comparable-store sales performance, cost containment efforts and effective implementation of its operational and financial initiatives. (Read more: Foot Locker Posts Positive Q3 Earnings Surprise)
Consequently, management reaffirmed its projection of a mid-single-digit increase in comps in fiscal 2016. Further, it continues to expect double-digit growth in earnings per share for fiscal 2016.
FOOT LOCKER INC Price and Consensus
FOOT LOCKER INC Price and Consensus | FOOT LOCKER INC Quote
Stocks to Consider
Other favorably placed stocks in the retail space include Best Buy Co., Inc. (BBY - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Tilly’s Inc. (TLYS - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy, with a long-term earnings growth rate of 11.9%, has jumped 53.8% year to date.
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained roughly 91.8% year to date.
Tilly’s, with a long-term earnings growth rate of 15.5%, has surged a whopping 125.2% in the past six months.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>