In the latest trading session, Foot Locker (FL - Free Report) closed at $56.67, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 1.14%.
Heading into today, shares of the shoe store had lost 11.08% over the past month, lagging the Retail-Wholesale sector's loss of 3.96% and the S&P 500's loss of 3.2% in that time.
Wall Street will be looking for positivity from FL as it approaches its next earnings report date. This 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. Our most recent consensus estimate is calling for quarterly revenue of $2.11 billion, up 3.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $8.33 billion, which would represent changes of +10.4% and +4.91%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for FL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. FL is currently a Zacks Rank #3 (Hold).
Digging into valuation, FL currently has a Forward P/E ratio of 10.78. For comparison, its industry has an average Forward P/E of 12.5, which means FL is trading at a discount to the group.
Investors should also note that FL has a PEG ratio of 1.14 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. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow FL in the coming trading sessions, be sure to utilize Zacks.com.