Our new technical analysis of Footlocker (NYSE:FL)


USD 33.96  0.02  0.06%   

As many baby boomers are indifferent towards consumer cyclical space, it makes sense to summarize Footlocker against current market trends. As we have suggested previously, Footlocker is beginning its pull down as stakeholders shift to be more bearish due to the increased sector volatility. Footlocker follows the market closely. The returns on the market and returns on Footlocker appear more or less related for the last few months. Steady essential indicators of the company may denote signs of medium-term price drift for stakeholders. Footlocker is scheduled to announce its earnings today.
Published over three months ago
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The entity's average rating is Hold from 12 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Footlocker market sentiment investors' perception of the future value of Footlocker. Let us look at a few aspects of Footlocker technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Footlocker. In general, we focus on analyzing Footlocker stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Footlocker's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Footlocker's intrinsic value. In addition to deriving basic predictive indicators for Footlocker, we also check how macroeconomic factors affect Footlocker price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Footlocker's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Footlocker in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Footlocker. Your research has to be compared to or analyzed against Footlocker's peers to derive any actionable benefits. When done correctly, Footlocker's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Footlocker.

How important is Footlocker's Liquidity

Footlocker financial leverage refers to using borrowed capital as a funding source to finance Footlocker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Footlocker financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Footlocker's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Footlocker, but it might be worth checking our own buy vs. sell analysis

An Additional Perspective On Footlocker

The firm has a beta of 0.6961. Let's try to break down what Footlocker's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Footlocker will likely underperform. The beta indicator helps investors understand whether Footlocker moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Footlocker deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Footlocker generated the yearly revenue of 8.96 B. Reported Net Income was 893 M with gross profit of 3.06 B.

Another setback for Footlocker stakeholders

New variance is at 23.5. Footlocker exhibits very low volatility with skewness of -3.28 and kurtosis of 20.19. However, we advise investors to further study Footlocker technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Footlocker's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Footlocker's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Footlocker Implied Volatility

Footlocker's implied volatility exposes the market's sentiment of Footlocker stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Footlocker's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Footlocker stock will not fluctuate a lot when Footlocker's options are near their expiration.

Our Bottom Line On Footlocker

While other entities in the apparel retail industry are either recovering or due for a correction, Footlocker may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Footlocker nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Footlocker.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Footlocker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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