The USD 31.8 support area has been tested and now might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, Foot Locker is undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.67 times its revenues.
This valuation is only 11.93 and 10.72 times the two next years earnings.

Technically, the share is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 33.4, shows. Nevertheless, the stock seems able to breakout this level to reverse the trend in the mid-term and to reintegrate the bullish channel (blue lines).

Therefore, the current breakout of the USD 33.45 give an opportunity to buy the share for investors. The first goal is a return in the USD 35.1 resistance area, that is a potential of 4.8%. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid term in order to reach the year highs. A stop loss order can be placed under USD 32.5.