Sunday, July 20, 2014

"Searching through the rubble of the Retail stocks and their rough Winter, I found a footwear company worthy of your investment dollars. That would be Foot Locker Inc. (Symbol FL)."

Dow Jones Industrial Average 17,100 (UP) Week ending 07-18-2014

I started out my illustrious career working for a division of a shoe company, Melville Corporation. Their largest division was the retail freestanding chain called Thom MCan that had 1000's of shoe stores. I started work at a new small fledgling division of Melville called CVS Pharmacies, (Consumer Value Stores), and grand opened their first store in Southeastern PA. as the store manager. (CVS later was spun off from Melville, and became a great stock investment itself.)

Foot Locker Inc. (Symbol FL, $48.67) a New York City, NY based chain has many divisions itself. Among them are Foot Locker, Lady Foot Locker, Kids Foot Locker, FootAction, Champs Sports, Eastbay, CCS, Runnerspoint, Sidestep, and Six:02. 

Foot Locker by the numbers has a PEG Ratio of 1.057 and a Return on Equity of 18.18% and very little Long Term debt. 

FL has and Investors Business rating of 94-96-90, (Smart Select Rating, Earnings growth rating, and Accumulation rating), which would be great numbers for any industry, let alone Retail.

The company has a dividend payout yield of 1.81% to keep away the short sellers.

2013 earnings per share was $2.80 and 2014 is projecting to be $3.30 per share. In 2015 they are looking at $3.63 per share which is a projected PE of 13.21. The current PE on the stock is 15.78.

Revenues for the company last year was $6.735 Billion dollars. Quarterly Free Cash flow is $223 Million dollars. The company has a healthy Current Ratio of 3.536 to 1. 

Analyst have 13 Buy ratings and 2 Overweight Ratings on the FL stock. Foot Locker Insiders have been buying the stock in the last 3 -6- and 12 months. 

How has the stock appreciated recently?  The YTD return has been 17.45%. The twelve month  trailing rate of return , (TTM) , has been 33.05% and for the trailing 3 years it has been 110.6%.
I think these are certainly numbers that you can live with in your portfolio.

I would say that this stock is "Foot Locker Approved" to purchase right now, right here. 

Have a great week and watch the very exciting and action packed Tour De France Bicycle race that hits the mountains this week.


No comments:

Post a Comment