We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Foot Locker (FL) Stock?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.71 right now. For comparison, its industry sports an average P/E of 15.09. Over the last 12 months, FL's Forward P/E has been as high as 10.55 and as low as 4.75, with a median of 7.32.
We should also highlight that FL has a P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.06. Over the past 12 months, FL's P/B has been as high as 1.33 and as low as 0.71, with a median of 0.94.
Finally, investors should note that FL has a P/CF ratio of 6.35. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FL's current P/CF looks attractive when compared to its industry's average P/CF of 7.97. FL's P/CF has been as high as 6.91 and as low as 2.28, with a median of 4.31, all within the past year.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 2 (Buy) stock with a Value score of A.
Shares of Urban Outfitters currently holds a Forward P/E ratio of 11.43, and its PEG ratio is 0.64. In comparison, its industry sports average P/E and PEG ratios of 15.09 and 0.97.
URBN's price-to-earnings ratio has been as high as 16.59 and as low as 5.92, with a median of 9.87, while its PEG ratio has been as high as 0.92 and as low as 0.33, with a median of 0.55, all within the past year.
Urban Outfitters also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 3.06. Over the past year, its P/B ratio has been as high as 1.59, as low as 1.01, with a median of 1.28.
These are only a few of the key metrics included in Foot Locker and Urban Outfitters strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FL and URBN look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Foot Locker (FL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Foot Locker (FL - Free Report) . FL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.71 right now. For comparison, its industry sports an average P/E of 15.09. Over the last 12 months, FL's Forward P/E has been as high as 10.55 and as low as 4.75, with a median of 7.32.
We should also highlight that FL has a P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.06. Over the past 12 months, FL's P/B has been as high as 1.33 and as low as 0.71, with a median of 0.94.
Finally, investors should note that FL has a P/CF ratio of 6.35. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FL's current P/CF looks attractive when compared to its industry's average P/CF of 7.97. FL's P/CF has been as high as 6.91 and as low as 2.28, with a median of 4.31, all within the past year.
If you're looking for another solid Retail - Apparel and Shoes value stock, take a look at Urban Outfitters (URBN - Free Report) . URBN is a # 2 (Buy) stock with a Value score of A.
Shares of Urban Outfitters currently holds a Forward P/E ratio of 11.43, and its PEG ratio is 0.64. In comparison, its industry sports average P/E and PEG ratios of 15.09 and 0.97.
URBN's price-to-earnings ratio has been as high as 16.59 and as low as 5.92, with a median of 9.87, while its PEG ratio has been as high as 0.92 and as low as 0.33, with a median of 0.55, all within the past year.
Urban Outfitters also has a P/B ratio of 1.40 compared to its industry's price-to-book ratio of 3.06. Over the past year, its P/B ratio has been as high as 1.59, as low as 1.01, with a median of 1.28.
These are only a few of the key metrics included in Foot Locker and Urban Outfitters strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FL and URBN look like an impressive value stock at the moment.