As shares retreat for the retailer after earnings report, some analysts see the pullback as the perfect opportunity to buy.
"Absolutely, this is a buying opportunity," Wedbush Securities' analyst Christopher Svezia told Real Money in an interview. "Last quarter when it went down like this it ripped up into the 50s."
He added that his thesis which suggest Foot Locker Inc. stock could grow beyond the $50 remains intact, as he reiterated an outperform rating and a $63 price target.
Foot Locker traded at $46.66 per share on Friday, declining more than 12% at 1:43 p.m.
"The company has succeeded in overcoming fears among some investors of continued negative comparable sales that would have put the outlook at risk," he explained in his note this morning. "FL reported a second quarter beat on most lines as the company critically delivered an inflection to positive [same store sales] and commented on providing stronger growth in the second half," he explained in his note this morning.
He went on to add that Foot Locker is Nike's "most important partner", indicating his belief that continued partnerships with the popular shoe manufacturer will bolster results in the second half.
The cause for the rapid retreat was not an easy one for Svezia to pinpoint.
"I'm greatly perplexed," he said. "You could say they walked down third quarter guidance a little bit, but overall we're surprised."
Svezia isn't the only one to be bullish on Foot Locker.
"The daily On-Balance-Volume (OBV) line has been rising since November telling us that buyers of FL have been more aggressive," said Bruce Kamich, Real Money contributor, in his morning analysis of Foot Locker's technical indicators.
The Moving Average Convergence Divergence (MACD) oscillator is "close to moving above the zero line for an outright go long signal," he noted.