Demystifying Foot Locker: Insights From 9 Analyst Reviews

In the last three months, 9 analysts have published ratings on Foot Locker FL, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $25.67, a high estimate of $32.00, and a low estimate of $20.00. Witnessing a positive shift, the current average has risen by 2.19% from the previous average price target of $25.12.

Investigating Analyst Ratings: An Elaborate Study

The standing of Foot Locker among financial experts becomes clear with a thorough analysis 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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Foot Locker. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Foot Locker compared to the broader market.
• Price Targets: Gaining insights, analysts provide 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: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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 -21.18% 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 is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.28%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Foot Locker's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.12%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Foot Locker's debt-to-equity ratio is below the industry average. With a ratio of 1.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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