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Foot Locker (FL) closed the most recent trading day at $46.57, moving -1.54% from the previous trading session. This change lagged the S&P 500’s 0.69% loss on the day.

– Zacks

Heading into today, shares of the shoe store had lost 9.39% over the past month, lagging the Retail-Wholesale sector’s loss of 5.22% and the S&P 500’s loss of 2.58% in that time.

Wall Street will be looking for positivity from FL as it approaches its next earnings report date. The company is expected to report EPS of $1.32, up 9.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, up 0.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $8.88 billion. These totals would mark changes of +145.91% and +17.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.99% lower. FL currently has a Zacks Rank of #3 (Hold).

In terms of valuation, FL is currently trading at a Forward P/E ratio of 6.85. For comparison, its industry has an average Forward P/E of 11.41, which means FL is trading at a discount to the group.

Also, we should mention that FL has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Retail – Apparel and Shoes stocks are, on average, holding a PEG ratio of 0.66 based on yesterday’s closing prices.

The Retail – Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FL in the coming trading sessions, be sure to utilize Zacks.com.

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Roland Millaner