Skip to main content

FL STOCK WRITE UP

FL (FOOT LOCKER)

  • P/E: 15.2
  • GAAP DILUTED YO-Y EPS GROWTH LAST QUARTER: $.28
  • SECTOR: RETAIL TRADE
  • ASSETS-LIABILITIES: 3.39
  • DIVIDEND: 1.68%

According to statisticbrain, Foot Locker was the largest shoe retailer in the United States as of 8/13/2016. Foot Locker posted a 24.5% year-over-year EPS gain in the most recent quarter, meaning its successful business is still growing. The company has a low price-to-earnings multiple and a high rate of growth with solid financials, giving the stock room to climb.
While many retail stores have faired poorly due to the recent emergence of Amazon and other online retailers, Foot Locker does not suffer because their services are hard to duplicate online. You can not try on a shoe from Amazon prior to purchasing, for example. For customers who do not need to try on the shoe, either because they have already purchased the same shoe, or have tried on shoes of the same brand, Foot Locker also sells shoes through Amazon. In this manner, Foot Locker is utilizing the expanding online shopping market, while still having the fortune to be positioned in a retail sector which typically requires the customers' physical presence due to discrepancies between manufacturers' standards.
Foot Locker has an impressive ratio of assets to liabilities at 3.39. This means they have great flexibility with spending for improvement of store fronts, research, advertising, and development. The company also realized a slight increase in gross margin in their last quarter. They offer a dividend to investors, and the stock price is undervalued at a price-to-earnings multiple of approximately 15.2. The stock has the means, demonstrated business practices, and market position to grow.

SOURCES:



Labels:

Comments

Post a Comment

Popular posts from this blog

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more

CLS STOCK WRITE UP

CLS (CELESTICA) P/E: 15.1 GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.14 SECTOR: ELECTRONIC TECHNOLOGY ASSETS-LIABILITIES: 1.78 DIVIDEND: none Celestica, a spinoff from IBM, manufactures electronics and provides supply chain services for a variety of businesses. The company has successfully improved upon its operating margins and revenue during its last fiscal year. Reporting April 20 th before market open, the company will try to beat Wall street expectations of $.28 and its own guidance of $.24-$.3. Celestica provides services for the communications, consumer, server, and storage industries, as well as working in diversified companies. This wide array of services gives Celestica the opportunity to expand on revenue when one of its segments is lagging. Rather than developing new products to boost revenue, Celestica must rely on increasing customer satisfaction by managing supply chains well for its clients. In order to showcase their services,...
Post a Comment
Read more

GOOG STOCK WRITE UP

GOOG (ALPHABET INC) P/E: 31.7 GAAP DILUTED EPS GROWTH Q4 '15 to Q4 '16: $.50 SECTOR: TECHNOLOGY SERVICES ASSETS-LIABILITIES: 5.8 DIVIDEND: NONE This stock is a new addition to my portfolio. The price-to-earnings multiple is higher than my target price-to-earnings multiple, but I decided to purchase the stock due to its solid year-over-year EPS growth, positive chart alignment, positive cash flow, ubiquitous market presence, and rapid growth in the technology sector. I believe this stock will head much higher, and that its earnings will keep up with the rapid pace of its growth to ensure its stability. Google became a popular product due to its excellent search engine. As a result of its success, with approximately 80.5% of global market share according to a recent survey, Google has built a strong revenue base through its advertising services. However, Google has taken the challenge of expanding its services beyond the search engine field i...
Post a Comment
Read more