By Christiana Sciaudone
Investing.com -- Foot Locker (NYSE:FL) rose after Goldman Sachs (NYSE:GS) initiated coverage with a buy.
Shares rose 1% on Tuesday amid a broader market sell-off.
Foot Locker is competitively positioned with enduring tailwinds, Goldman said, according to Seeking Alpha. Foot Locker is strategically important to key vendors, has strong category dynamics and products cycles, as well as market share consolidation opportunities, the bank said.
"While we recognize potential for near-term volatility given an uncertain consumer recovery path associated with Covid-19, we believe Foot Locker's solid balance sheet, net cash position, and national footprint positions the share for outperformance," according to Goldman Sachs.
Last month, Foot Locker reported earnings per share of 71 cents compared to the expected 32 cents on sales of $2.08 billion compared to the expected $1.83 billion. Results beat forecasts even after Foot Locker had earlier disclosed that sales in the second quarter were strong thanks to stimulus spending. Comparable-store sales rose 18%. The company reinstated its quarterly dividend program based on its strong liquidity and stable cash outlook.
Shares have seven buy ratings, eight holds and no sells.