Foot Locker’s stock tumbles 29% after weak results
Foot Locker (FL) lost more than a quarter of its value after reporting its fiscal 2Q17 results on August 18. As we’ve discussed throughout this series, the athletic specialty retailer fell short of its expectations for its top line and bottom line. The stock witnessed its worst single-day decline since the 2007 recession, recording a fall of 28.9%.
The slide didn’t stop there. Foot Locker fell another 7.5% on the next trading day after facing several Wall Street downgrades. The stock hit its four-year low of $31.80 on August 21.
Foot Locker (FL) now sits at a year-to-date loss of ~55% and trades at a massive 150% below its 52-week-high price.
Foot Locker has underperformed the seven-company S&P 500 Apparel and Accessories Index (+5%) and the S&P 500 Index (SPX) (+8.5%).
What can you expect from FL’s stock price now?
Wall Street analysts released a slew of target price revisions and rating downgrades after Foot Locker’s fiscal 2Q17 results. Despite the downward revisions, Foot Locker stock still has an upside potential of 33%. Its stock price is expected to touch $42.32 over the next 12 months. Please read the next article to see how Wall Street rated FL stock.
Investors looking for exposure to FL could consider the First Trust Consumer Discretionary AlphaDEX ETF (FXD), which invests 1% of its portfolio in the company.