The company announced a couple of acquisitions earlier this month that may have helped boost the share price. It is hard to say because the increase coincided with the recent encouraging news on inflation. Foot Locker reports results before Friday’s opening bell.
Of 20 analysts covering the company, 13 have moved to the sidelines with a Hold rating. Only two have a Buy or Strong Buy rating. At a share price of around $32.40, the stock trades above its median price target of $31.00. At the high price target of $43.00, the upside potential is 32.7%.
Fiscal 2023 second-quarter revenue is forecast at $2.07 billion, down 4.8% sequentially and by 8.8% year over year. Adjusted EPS are forecast at $0.82, down 48.5% sequentially and by 62.9% year over year. For the full fiscal year ending next January, Foot Locker is expected to report EPS of $4.43, down almost 43%, on revenue of $8.48 billion, down 5.4%.
The stock trades at 7.3 times expected 2023 EPS, 7.8 times estimated 2024 earnings of $4.13 and 7.2 times estimated 2025 earnings of $4.49 per share. Foot Locker’s 52-week range is $23.85 to $61.50. The company pays an annual dividend of $1.60 (yield of 5.1%). Total shareholder return for the past year was negative 39.3%.
Ross Stores
Off-price apparel retailer Ross Stores Inc. (NASDAQ: ROST) has seen its share price trail down for the entire past 12 months. Its 52-week high was posted 363 days ago, and the 52-week low was put on the board in early July. Since then, the stock has added almost 30%, narrowing its 12-month decline to 24.8% compared to down 43% at its trough.
Discount stores typically do well during periods of inflationary pressure and rising prices, and Walmart’s quarterly report Tuesday morning gave most retailers a bump. Ross reports quarterly results after markets close on Thursday.
Analysts are bullish, with 13 of 23 rating shares at Buy or Strong Buy and the rest having Hold ratings. At a share price of around $92.60, the stock has outrun its median price target of $91.50. At the high price target of $125.00, the upside potential is just short of 35%.
For the second quarter of fiscal 2023, analysts expect Ross to report revenue of $4.62 billion, up 6.6% sequentially but down about 3.8% year over year. Adjusted EPS are forecast at $1.01, up 3.8% sequentially and 27.3% lower year over year. For the full fiscal year ending in January, analysts are forecasting EPS of $4.30, down 11.8%, on sales of $18.68 billion, down 1.3%.
The stock trades at 21.6 times expected 2023 EPS, 18.3 times estimated 2024 earnings of $5.06 and 15.5 times estimated 2025 earnings of $5.96 per share. The 52-week range is $69.24 to $126.86. The company pays an annual dividend of $1.24 (yield of 1.34%). Total shareholder return for the past year was negative 24.9%.
Originally posted at 24/7 Wall St.
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