This Undervalued Retailer Has a 4% Dividend
Shares of Foot Locker (NYSE: FL) fell sharply last year on concerns of weak mall traffic and increased competition from direct-to-consumer channels. Foot Locker's stock price declined 27% in 2019, while the S&P 500 gained 29%.
However, Foot Locker's sales should get a boost from new product launches as well as ongoing strength in Nike's Jordan brand products. Beyonce's highly anticipated Ivy Park activewear collection just launched, and Foot Locker is a retail partner. Analysts say Ivy Park has the potential to reach over $1 billion in sales.
Given the company's sales growth potential, its conservative valuation, and its near-4% dividend yield, shares look compelling.
Source Fool.com
