10 Most Undervalued Small-Cap Stocks To Invest In

6. Foot Locker, Inc. (NYSE:FL)

Market Cap: $1.93 billion

Forward P/E: 15

Number of Hedge Fund Holders: 27

Foot Locker, Inc. (NYSE:FL) is a retailer of shoes and apparel that operates in three segments: North America, Europe, Middle East, and Africa (EMEA), and Asia Pacific. Its portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, atmos, and WSS. The omnichannel retailer operates around 2,523 stores in 26 countries across Europe, North America, New Zealand, Australia, and Asia.

The company experienced total comp growth of 2.4% in fiscal Q3 2024, attributed to share gains from its global Foot Locker and Kid Foot Locker banners, which drove 2.8% comp growth. In addition, Foot Locker, Inc.’s (NYSE:FL) WSS and Champs Sports banners were up 1.8% and 2.8%, respectively. This growth was supported by strength in the back-to-school period.

Foot Locker, Inc. (NYSE:FL) is also demonstrating disciplined expense management, which is helping its growth. This includes executing its Cost Savings plan, which is anticipated to deliver $90 million in savings instead of the company’s expectation of around $80 million. While Foot Locker, Inc. (NYSE:FL) is seeing cautious discretionary spending, its controlled inventory levels give it the agility and flexibility to flow products across multiple brand partners and match supply with consumer demand. It ranks sixth on our list.