Foot Locker (FL, $38.39) beats Q2 earnings expectations
Foot Locker's adjusted earnings for the three months ending In July plunged 50% from the year-ago quarter to $1.10 per share, but exceeded the Street consensus expectations of 81 cents per share.
Revenues decreased 9% to $2.065 billion, vs. analysts' estimates of a $2.07 billion. Same-store sales fell 10.3%.
For fiscal 2022, the company now projects earnings in the range of $4.25 to $4.45 per share, down 15 cents from the higher end of its previous guidance.
Nike typically contributed around 75% of Foot Locker sales in a given year. But with the sneaker brand’s shift in focus towards direct-to-consumer sales and therefore bypassing retailers, Foot Locker cautioned in February that Nike would likely only account for around 60% of sales this year.
Momentum Indicator for FL turns negative, indicating new downward trend
FL saw its Momentum Indicator move below the 0 level on May 19, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 98 similar instances where the indicator turned negative. In of the 98 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for FL turned negative on May 19, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
FL moved below its 50-day moving average on May 19, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FL crossed bearishly below the 50-day moving average on May 08, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FL entered a downward trend on June 01, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FL advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
FL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.705) is normal, around the industry mean (3.366). P/E Ratio (9.425) is within average values for comparable stocks, (107.547). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.382). Dividend Yield (0.064) settles around the average of (0.041) among similar stocks. P/S Ratio (0.277) is also within normal values, averaging (1.527).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. FL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which sells athletic footwear and apparels
Industry ApparelFootwearRetail
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FL and
Correlation & Price change
A.I.dvisor indicates that over the last year, FL has been loosely correlated with ZUMZ. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if FL jumps, then ZUMZ could also see price increases.
