The Case for and Against Foot Locker, Inc. (FL)

Foot Locker, Inc. (FL) is an interesting player in the Consumer Goods space, with a focus on Textile – Apparel Footwear & Accessories. The stock has been active on the tape, currently trading at $44.15, up from yesterday’s close by 1.22%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Foot Locker, Inc. (FL) currently trades with a market capitalization of $5.08 Billion. That value represents a market adjusting for revenues that have been growing by 4.59 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $539 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.25 on a per share basis this quarter. Perhaps, that suggests something about why 2.66% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Foot Locker, Inc. recorded a 52-week high of $72.59. It is now trading 28.44% off that level. The stock is trading $43.48 its 50-day moving average by -0.67%. The stock carved out a 52-week low down at $28.42.

In recent action, Foot Locker, Inc. (FL) has made a move of +4.08% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.61, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.00% with $112.62 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of FL.

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