Foot Locker’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, Foot Locker seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.88 times its revenues.
This valuation is just 11.5 and 10.5 times the two next years earnings.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 54.1 area should stop this trend and allow a technical rebound towards USD 59.45.
Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

Therefore, the proximity of the USD 54.1 support is an opportunity to go long on Foot Locker. The first goal is a return in the USD 59.45 resistance area, that is a potential of 8.7%. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop-loss order can be placed under the support currently tested.