Foot Locker Puts In An Excellent Performance On Nike Earnings Beat

Foot Locker (FL) surged more than 9.66% on Wednesday, playing off an impressive earnings beat by Nike (NKE). The latter reported 2nd Quarter November 2022 earnings of $0.85 per share on revenue of $13.3 billion. The consensus earnings estimate was $0.65 per share on revenue of $12.5 billion.

The company is a retailer of athletically inspired shoes and apparel, operating primarily mall-based stores in the United States, Canada, Europe, Australia, and New Zealand.

On November 17, Foot Locker (FL) reported 3rd Quarter October 2022 earnings of $1.27 per share on revenue of $2.2 billion. The consensus earnings estimate was $1.09 per share on revenue of $2.1 billion. The company will report again the first week of February,

Foot Locker Performance

Foot Locker (FL) gained $3.17 per share on Wednesday gapping up at the open, pausing for a brief 60 minutes, then resuming for a sprint back to the 21d moving average by the close. Volume was well above average with (RVOL 2x), simultaneously pushing its RS line to 81.

Price action pulled away from VWAP all day, with a close at the high of the day, a sign the stock was “in-play” on Wednesday.

A break out above the 40.00 pivot is our target short-term.

Foot Locker (FL) carries a number 6 ranking by Investors Business Daily. This apparel, shoes and accessories industry group is lead by number 1 ranked Lululemon Athletica (LULU) is another stock were are interested in trading on a follow through. Wednesday marked a potential short-term bottom in LULU is the stock surged +3.13% on the day.

Foot Locker Weekly 

Foot Locker (FL) is building higher lows and potentially, a higher high with a break above the 40.00 pivot. Note price action is above the long term 10 period weekly moving average. This momentum has turned up, signaling a move back into the larger range.

Foot Locker (FL) valuations look good too, with Price trading at a discount to sales and EBITDA. Earnings growth date of 10%.

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Happy Trading, 

Vinny

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