From a fundamental viewpoint, the company is strong. The Thomson Reuters consensus revised regularly upward sales and earnings estimates for the current and the next years. The financial situation is good and the EPS should rise from USD 2.85 last year to USD 3.45 this year. Surperformance ratings highlight attractive valuation levels, with a P/E ratio at 16.6x and an enterprise value at 7.92 times the EBITDA, both for the current year.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. Prices recently gave a bullish signal when they crossed the ascending trendline. This new dynamic should allow the stock to reach its USD 63.6 resistance, which will be the first target price.
Thanks to these good indicators, it seems relevant to take a long position in Foot Locker at the current price. The target price is the USD 63.6 midterm resistance. A stop loss will be set around the bullish trendline, because a breakdown of this level would damage technical pattern.
Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through three segments: North America, Europe, Middle East, and Africa (EMEA), and Asia Pacific. The Company's portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. It uses its omni-channel capabilities to bridge the digital world and physical stores, including order-in-store, buy online and pickup-in-store, and buy online and ship-from-store, as well as e-commerce. It operates websites and mobile apps aligned with the brand names of its store banners. The Company operates approximately 2,523 stores in 26 countries across North America, Europe, Australia, New Zealand, and Asia, and a franchised store presence in the Middle East and Asia. The Kids Foot Locker offers athletic footwear, apparel, and accessories for children. Champs Sports is a primarily mall-based specialty athletic footwear and apparel retailer. atmos is a digitally led, brand featuring sneakers and apparel.