Foot Locker's Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of athletic apparel retailer Foot Locker (NYS: FL) jumped as much as 11.5% on fairly heavy volume today, led by a huge volume spike right at the opening bell.
So what: It's a double dose of good news: The NBA will actually play a season this year after coming to terms with its players' union, and Foot Locker's Black Friday sales came in strong. Analysts at UBS upgraded the stock to a buy with a $42 price target in light of this double whammy.
Now what: The stock is not far away from five-year highs, yet remains a far deeper value than rivals Dick's Sporting Goods (NYS: DKS) and Hibbett Sports (NAS: HIBB) . It's on par with Finish Line (NAS: FINL) , but Foot Locker pays a far more generous dividend than any of these competitors. Income hunters and value hounds alike would be wise to give this sneaker specialist a closer look.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.