Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
In a challenging market environment, shares of Brown Shoe Company, Inc. (CAL) have reached a 52-week low, dipping to $14.32. According to InvestingPro data, the stock trades at a modest P/E ratio of 4.74 and appears undervalued based on Fair Value analysis. The footwear retailer, known for its diverse portfolio of brands, has faced significant headwinds over the past year, reflected in a steep 1-year change with a decline of -58.56%. Despite these challenges, the company maintains a remarkable 55-year streak of consecutive dividend payments. Investors have shown concern as the company grapples with industry-wide issues, including supply chain disruptions and changing consumer spending habits, which have pressured the stock to its current low point. The market will be watching closely to see if CAL can strategize a rebound or if it will continue to underperform in the coming quarters, with analyst targets suggesting potential upside from current levels. For deeper insights into CAL’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Caleres (NYSE:CAL) Inc. reported its Q4 2024 earnings, which fell short of analyst expectations. The company posted an adjusted earnings per share (EPS) of $0.33, missing the forecasted $0.40, and revenue of $639.2 million, below the expected $651.24 million. Despite these results, Caleres anticipates a revenue expansion of over 8% in 2025, largely attributed to the acquisition of Stuart Weitzman, a deal valued at $105 million. The acquisition is expected to add approximately $230 million in revenue and bolster the company’s presence in the premium luxury market. However, S&P Global Ratings downgraded Caleres’ credit rating from ’BB’ to ’BB-’ due to high leverage and weak operating performance. The company’s leverage is projected to increase further in fiscal year 2025, with outstanding debt expected to rise to about $250 million. Additionally, Caleres announced a leadership change, with Michael R. Edwards stepping down as Division President of Famous Footwear, although a successor has not yet been named. These developments come amid ongoing challenges such as weak consumer demand and elevated supply chain costs, which continue to impact Caleres’ financial performance.
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