Evaluating Foot Locker: Insights From 10 Financial Analysts

Across the recent three months, 10 analysts have shared their insights on Foot Locker FL, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $29.9, a high estimate of $38.00, and a low estimate of $18.00. This upward trend is apparent, with the current average reflecting a 5.95% increase from the previous average price target of $28.22.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Foot Locker. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Foot Locker. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Foot Locker compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Foot Locker's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Foot Locker's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Foot Locker analyst ratings.

Delving into Foot Locker's Background

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.

Foot Locker's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Foot Locker's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 1.93%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Foot Locker's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -0.63%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Foot Locker's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.41%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Foot Locker's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.17%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Foot Locker's debt-to-equity ratio is below the industry average at 1.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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