Foot Locker FL shares soared 19% in the last trading session to close at $13.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.4% loss over the past four weeks.
U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Foot Locker is making meaningful progress with its Lace Up Plan, leveraging strategic initiatives like digital acceleration, store optimization, and brand diversification to fuel comparable sales growth and margin improvement.
This shoe store is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -95.5%. Revenues are expected to be $1.85 billion, down 1.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Foot Locker, the consensus EPS estimate for the quarter has been revised 90.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Foot Locker is part of the Zacks Retail - Apparel and Shoes industry. Boot Barn BOOT, another stock in the same industry, closed the last trading session 12.8% higher at $103.69. BOOT has returned -9.5% in the past month.
Boot Barn's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.24. Compared to the company's year-ago EPS, this represents a change of +22.8%. Boot Barn currently boasts a Zacks Rank of #3 (Hold).
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Foot Locker, Inc. (FL): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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