The entity's average rating is Hold from 12 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Footlocker market sentiment investors' perception of the future value of Footlocker. Let us look at a few aspects of Footlocker technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Foot Locker. In general, sophisticated investors focus on analyzing Foot Locker stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Foot Locker's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Foot Locker's intrinsic value. In addition to deriving basic predictive indicators for Foot Locker, many experienced traders also check how macroeconomic factors affect Foot Locker price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Foot Locker's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Foot Locker. Your research has to be compared to or analyzed against Foot Locker's peers to derive any actionable benefits. When done correctly, Foot Locker's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Foot Locker.
How important is Foot Locker's Liquidity
Foot Locker
financial leverage refers to using borrowed capital as a funding source to finance Foot Locker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foot Locker financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Foot Locker's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Foot Locker's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Foot Locker's total debt and its cash.
Foot Locker Gross Profit
Foot Locker Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Foot Locker previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Foot Locker Gross Profit growth over the last 10 years. Please check Foot Locker's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Foot Locker
The firm has a beta of 0.6961. Let's try to break down what Footlocker's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Footlocker will likely underperform. The beta indicator helps investors understand whether Footlocker moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Footlocker deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Footlocker generated the yearly revenue of 8.96
B. Reported Net Income was 893
M with gross profit of 3.06
B.
Another setback for Footlocker stakeholders
New variance is at 23.5. Footlocker exhibits very low volatility with skewness of -3.28 and kurtosis of 20.19. However, we advise investors to further study Footlocker technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Footlocker's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Footlocker's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Footlocker Implied Volatility
Footlocker's implied volatility exposes the market's sentiment of Footlocker stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Footlocker's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Footlocker stock will not fluctuate a lot when Footlocker's options are near their expiration.
Our Bottom Line On Footlocker
While other entities in the apparel retail industry are either recovering or due for a correction, Footlocker may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Footlocker nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Footlocker.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 Ellen Johnson do not own shares of Foot Locker. Please refer to our
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