Foot Locker (FL) Stock Near 23 Year High

FL

Foot Locker (FL) Share’s Rally Should Extend

Less than 3 weeks ago I recommended buying shares of Foot Locker (FL) as a means of capitalizing on the growth of the athletic apparel sector at a much cheaper valuation than Nike (NKE), Adidas (ADDYY), or Under Armour (UA) can be purchased at. Shares are up 9% since then and are now approaching their highest level since 1990. In August Foot Locker traded as high as $37.85, and we will be watching closely as the stock looks to take out that level in the next few trading sessions. In the past 3 months FL has tested and bounced off of their long-term uptrend line multiple times, a very bullish sign for investors. Very similar to what we’ve seen with Yahoo (YHOO) this week, Foot Locker has a great deal of upside above their 52 week high from a technical perspective with virtually no overhead resistance. More importantly they also possess the fundamentals to warrant significant appreciation. The athletic apparel sector as a whole is thriving right now with NKE, ADDYY, UA, Dicks (DKS), and Finish Line (FINL) all at or near all-time highs. Foot Locker the strongest balance sheet of the group, trades at the lowest multiples, and has a buyback program in place that will account for nearly 10% of outstanding shares. FL remains a strong buy and one of our top picks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

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