Foot Locker an undervalued stock with earnings growth

18 Dis 2019Foot Locker's earnings outlook has been improving in the last six months. Analysts have gone from expecting earnings to decline year-over-year to now expecting substantial earnings growth in 2020 and 2021. That means that Foot Locker's low valuation, with a P/E of just 8.3, should start to head back north toward the 10-20 range. Unless the earnings outlook turns negative again, I think FL's share price should hit $55 in the next year or two. Plus, with a 4% dividend, you get a nice yield on your investment.

31 Dis 2019

Komen

If we get a green close today, then Foot Locker should resume its climb. You're paying just 8.5 P/E for a stock with a nearly 4% dividend and strong earnings growth. This is an absolute steal.