Foot Locker (FL - Free Report) closed the most recent trading day at $54.24, moving -0.22% from the previous trading session. This change was narrower than the S&P 500's 1.65% loss on the day. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.96%.
Heading into today, shares of the shoe store had lost 14.16% over the past month, lagging the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 1.53% in that time.
FL will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2019. The company is expected to report EPS of $1.61, up 11.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.10 billion, up 3.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.20 per share and revenue of $8.32 billion. These totals would mark changes of +10.4% and +4.85%, respectively, from last year.
It is also important to note the 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, FL is holding a Forward P/E ratio of 10.45. For comparison, its industry has an average Forward P/E of 13.71, which means FL is trading at a discount to the group.
Investors should also note that FL has a PEG ratio of 1.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Apparel and Shoes stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.