(GCO) Genesco - Ratings and Ratios

Genesco Inc. is a multifaceted footwear and apparel retailer operating through four distinct segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands Group. The company has a significant presence in the global market, with retail stores in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland, operating under various brand names such as Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy. Their e-commerce operations are also robust, with multiple websites catering to different brands and customer segments.

The companys diverse portfolio includes the Journeys Group, which targets young men, women, and children with its footwear and accessories; the Schuh Group, known for its casual and athletic footwear; the Johnston & Murphy Group, which focuses on mens footwear, apparel, and accessories; and the Genesco Brands Group, which markets footwear under licensed brands like Levis, Dockers, and G.H. Bass. This diversified brand strategy allows Genesco to capture a broad customer base across different demographics and geographic regions.

From a technical analysis perspective, the stocks current price is $23.79, indicating a potential buying opportunity given its 20-day SMA of $19.86 and 50-day SMA of $21.60. However, the 200-day SMA stands at $30.45, suggesting a longer-term downtrend. The Average True Range (ATR) of 1.69 represents a 7.10% volatility, indicating moderate price swings. The stocks 52-week high and low are $43.99 and $17.20, respectively, showing a significant price range over the past year.

Fundamentally, Genesco Inc. has a market capitalization of $233.24M USD and a forward P/E ratio of 14.08, suggesting that the stock might be undervalued given its current price relative to expected earnings. However, the Return on Equity (RoE) is -3.52%, indicating that the company has faced challenges in generating profits for shareholders. The absence of a trailing P/E ratio further complicates the earnings picture, suggesting either a loss or a very low earnings per share in the last reported period.

Forecasting the future performance of GCO stock involves analyzing both technical and fundamental data. Given the current technical indicators, a short-term bullish trend might be emerging as the stock price is above both the 20-day and 50-day SMAs. However, the long-term downtrend indicated by the 200-day SMA is a concern. Fundamentally, the forward P/E ratio suggests potential for growth, but the negative RoE is a red flag. Assuming the company can improve its profitability, a potential target price could be around $30-$35, representing a 26%-47% increase from the current price. This forecast is contingent upon Genesco improving its RoE and maintaining a stable or increasing market capitalization. Investors should closely monitor earnings reports and industry trends to adjust their strategies accordingly.