Why Foot Locker, Inc. (FL) Surged Last Week

We recently published a list of These 10 Firms Are On Fire Today. In this article, we are going to take a look at where Foot Locker, Inc. (NYSE:FL) stands against other stocks that surged yesterday.

Wall Street’s main indices were a mixed bag anew on Thursday, with the tech-heavy Nasdaq the sole loser, as investors continued to digest results of more corporate earnings and key economic data.

The Nasdaq was down by 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.

Beyond the major indices, 10 companies finished stronger on the back of impressive corporate earnings and planned mergers and acquisitions. In this article, we explore the specific reasons behind their surge.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

Foot Locker, Inc. (NYSE:FL)

Foot Locker jumped by 85.7 percent on Thursday to close at $23.90 apiece following news that it is set to be acquired by Dick’s Sporting Goods for $2.4 billion.

In a statement, Foot Locker, Inc. (NYSE:FL) said it entered into a definitive merger agreement with Dick’s to acquire the former at a price of $24 apiece. Shareholders may also opt to instead convert each Foot Locker, Inc. (NYSE:FL) share to 0.1168 of Dick’s common stock.

The transaction is subject to regulatory and shareholders’ approval, as well as other customary closing conditions. The companies expect to close the transaction in the second half of 2025.

Preliminary results of its first quarter performance in the first quarter showed that Foot Locker, Inc. (NYSE:FL) swung to a net loss of $363 million from an $8 million net income in the same period last year. Sales also decreased by 2.6 percent.

Overall, FL ranks 1st on our list of stocks that surged yesterday. While we acknowledge the potential of FL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.