12 Most Undervalued Retail Stocks To Buy According to Analysts

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

Forward P/E: 15.37

Analyst Upside: 22.88%

Foot Locker (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’s fiscal Q2 2024 earnings show a positive trajectory, primarily due to its focused initiatives. The quarter saw significant progress in the execution of its Lace Up Plan. Strategic investments in support of the Lace Up Plan are working, as the company is returning to positive total and comparable sales growth along with a return to gross margin expansion.

Comparable sales grew by 2.6%, which was primarily attributed to the company’s global Foot Locker and Kids Foot Locker banners, which comped up 5.2%.  This positive trend continued throughout the company’s fiscal Q2 2024. In addition, Foot Locker’s (NYSE:FL) strategies across digital, store experience, loyalty, and brand building are continually taking hold. Its inventories are well-positioned, with products flowing to better align with consumer demand.

Overall, the company’s operations paint a positive picture, which is why analysts and investors are bullish on the stock. It takes the tenth spot on our list of the 12 most undervalued retail stocks to buy according to analysts.