Foot Locker, Inc. : Come back on a significant threshold
January 02, 2013 at 07:50 pm IST
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Share
BUY
Live
Entry price
Target
Stop-loss
Potential
US$32.12
US$0
US$30.6
-100%
Foot Locker, comes back upon contact with important technical level that might give impetus to a rebound.
From a fundamental viewpoint, the company shows positive information with an estimated PER of 12.7x for the current year. Furthermore, the EV/Sales ratio is 0.65x and it confirms the low valuation. Revenues and operating margin growth rates add relevance to this investment.
The area of the USD 31.25 support should enable the stock to have a new bullish trend. The long term support in this area confirms its relevance. Technically, above these levels, 4-traders analysts are optimistic and count on a return toward the short and mid-term resistances.
Investors can take a long position within the USD 31.25/31.8 area. In the first instance, the target price will be the 20-day moving average at USD 33.6 and then the USD 35.85. In case of breakdown of the USD 31.25 support at the closing price, investors should close their positions.
Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through three segments: North America, Europe, Middle East, and Africa (EMEA), and Asia Pacific. The Company's portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. It uses its omni-channel 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 operates websites and mobile apps aligned with the brand names of its store banners. The Company operates approximately 2,523 stores in 26 countries across North America, Europe, Australia, New Zealand, and Asia, and a franchised store presence in the Middle East and Asia. The Kids Foot Locker offers athletic footwear, apparel, and accessories for children. Champs Sports is a primarily mall-based specialty athletic footwear and apparel retailer. atmos is a digitally led, brand featuring sneakers and apparel.