U.S. markets open in 8 hours 5 minutes
  • S&P Futures

    3,454.25
    +22.00 (+0.64%)
     
  • Dow Futures

    28,345.00
    +163.00 (+0.58%)
     
  • Nasdaq Futures

    11,730.00
    +69.25 (+0.59%)
     
  • Russell 2000 Futures

    1,626.80
    +12.00 (+0.74%)
     
  • Crude Oil

    41.46
    -0.24 (-0.58%)
     
  • Gold

    1,921.40
    +6.00 (+0.31%)
     
  • Silver

    25.20
    +0.23 (+0.90%)
     
  • EUR/USD

    1.1848
    +0.0020 (+0.17%)
     
  • 10-Yr Bond

    0.7970
    0.0000 (0.00%)
     
  • Vix

    29.35
    +0.17 (+0.58%)
     
  • GBP/USD

    1.2977
    +0.0030 (+0.23%)
     
  • USD/JPY

    105.3010
    -0.1690 (-0.16%)
     
  • BTC-USD

    12,251.77
    +1,194.76 (+10.81%)
     
  • CMC Crypto 200

    246.06
    +7.15 (+2.99%)
     
  • FTSE 100

    5,889.22
    +4.57 (+0.08%)
     
  • Nikkei 225

    23,663.83
    +96.79 (+0.41%)
     

Price Over Earnings Overview: Foot Locker

Benzinga Insights
·2 mins read

 

In the current market session, Foot Locker Inc. (NYSE: FL) is trading at $28.60, after a 5.30% increase. However, over the past month, the stock fell by 4.04%, and in the past year, by 19.82%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.

The stock is currently higher from its 52 week low by 63.80%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Footwear & Accessories stocks, and capitalize on the lower share price observed over the year.

The P/E ratio is used by long-term shareholders to assess the company’s market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.

View more earnings on FL

Depending on the particular phase of a business cycle, some industries will perform better than others.

Foot Locker Inc. has a lower P/E than the aggregate P/E of 23.69 of the Footwear & Accessories industry. Ideally, one might believe that they might perform worse than its peers, but it’s also probable that the stock is undervalued.

P/E ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.