Foot Locker Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>FL</div>
FL -- USA Stock  

USD 32.80  0.07  0.21%

Foot Locker is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 21st of August 2020. While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to summarize Foot Locker under the new economic conditions. We will summarize the reasons why it is still possible for the company to generate above-average margins given the new economic outlook.
Published over a month ago
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Thinking to double down on Foot Locker (NYSE:FL) in September?
Foot Locker has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.0135, which means not very significant fluctuations relative to the market. Let's try to break down what Foot Locker's beta means in this case. As returns on the market increase, returns on owning Foot Locker are expected to decrease at a much lower rate. During the bear market, Foot Locker is likely to outperform the market. Although it is extremely important to respect Foot Locker historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Foot Locker technical indicators, you can presently evaluate if the expected return of 0.0977% will be sustainable into the future. Foot Locker right now shows a risk of 3.95%. Please confirm Foot Locker potential upside, and the relationship between the sortino ratio and skewness to decide if Foot Locker will be following its price patterns.
What is the right price you would pay to acquire a share of Foot Locker? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Foot Locker this year

Annual and quarterly reports issued by Foot Locker are formal financial statements that are published yearly and quarterly and sent to Foot Locker stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Foot Locker often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Foot Locker utilizes its cash?

To perform a cash flow analysis of Foot Locker, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Foot Locker is receiving and how much cash it distributes out in a given period. The Foot Locker cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Foot Locker Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 741.05 Million

Breaking down Foot Locker Indicators

Earning per share calculations of Foot Locker is based on official Zacks consensus of 10 analysts regarding Foot Locker's future annual earnings. Given the historical accuracy of 77.21%, the future earnings per share of the company is estimated to be 2.1136 with the lowest and highest values of 1.34 and 2.91, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Foot Locker a risky opportunity?

Let's check the volatility. Foot Locker is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Foot Locker (NYSE:FL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Foot Locker stock makes you a part-owner of that company.

Foot Locker Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Foot Locker. The Foot Locker consensus assessment is calculated by taking the average estimates from all of the analysts covering Foot Locker

Strong Buy
4
Buy
1
Hold
11
Sell
1
Strong Buy423.53
Buy15.88
Hold1164.71
Sell15.88
Strong Sell00.0

Is Foot Locker showing trail of lower volatility?

New total risk alpha is at -0.54. Foot Locker shows above-average downside volatility for the selected time horizon. We advise investors to inspect Foot Locker further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Foot Locker future alpha.

The Current Takeaway on Foot Locker Investment

While some firms in the footwear & accessories industry are either recovering or due for a correction, Foot Locker may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Foot Locker valuation and our trade advice on Foot Locker is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Foot Locker.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Foot Locker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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