8 Analysts Assess Foot Locker: What You Need To Know

In the preceding three months, 8 analysts have released ratings for Foot Locker FL, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $25.75, along with a high estimate of $33.00 and a low estimate of $18.00. This current average reflects an increase of 4.04% from the previous average price target of $24.75.

Interpreting Analyst Ratings: A Closer Look

The standing of Foot Locker among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Foot Locker. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Foot Locker compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Foot Locker's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Foot Locker's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Foot Locker analyst ratings.

Get to Know Foot Locker Better

Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Asia, Australia, and New Zealand. It also has a presence in the Middle East. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Its portfolio of brands, includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. The company has omnichannel capabilities to bridge the digital world and physical stores, including order-in-store, buy online and pickup-in-store, and buy online and ship-from-store, as well as e-commerce. It has three operating segments, North America, EMEA, and Asia Pacific.

Understanding the Numbers: Foot Locker's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Negative Revenue Trend: Examining Foot Locker's financials over 3 months reveals challenges. As of 30 April, 2024, the company experienced a decline of approximately -2.69% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.43%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Foot Locker's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.28%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Foot Locker's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.12%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.01.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.