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Why Foot Locker (FL) is Such a Great Value Stock Pick Right Now

Foot Locker (FL) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisi...

This story originally appeared on Zacks

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

- Zacks

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Foot Locker, Inc. FL.

Foot Locker in Focus

FL may be an interesting play thanks to its forward PE of 7.7, its P/S ratio of 0.6, and its decent dividend yield of 1.5%. These factors suggest that Foot Locker is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that FL has decent revenue metrics to back up its earnings.

But before you think that Foot Locker is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 20.1% in the past 30 days, thanks to six upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push FL to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Foot Locker is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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Foot Locker, Inc. (FL): Free Stock Analysis Report


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