Foot Locker, Inc. : Ready to come back on tops
Entry price | Target | Stop-loss | Potential |
---|
US$36.73 |
US$0 |
US$35.8 |
-100% |
---|
Same as EPS that has experienced a growth of 39% on 2014 and is anticipated to continue a positive path for a 2016 horizon, sales are expected to increase by 4% for the current year. The company counts also with a significant net margin of 6.48%, better than its peers. In addition to its market leadership, it is clearly an attractive target for investors because the stock is undervalued with a P/E ratio of 13.1 for 2014.
Technically speaking, the stock follows a well-oriented tendency in a long term, supported by increasing weekly moving averages. Having filled during last trading sessions a previous breakaway gap, the stock should be ready to come back to an upward trend thanks to the support at USD 36.6 and the 100-day moving average.
Investors could take a long position above USD 36.30, this with the objective to reach the USD 41.30 target. The trend is going to be reinforced when prices will break the short term resistance at USD 38.76. A stop loss will be placed below USD 36.30.
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