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Athletic shoe stocks pace market in half
NEW YORK (FNS) -- Footwear stocks outperformed the overall market in the first half of 1989 as takeover and leveraged buyout speculation abounded, but according to industry analysts there are still some undervalued issues.
The average price of a footwear stock traded on the New York Stock Exchange rose 38.5 percent compared with the Dow Jones Industrial Average, which gained 14.7 percent. In over-the-counter trading the average price of a footwear stock advanced nearly 46 percent, while the NASDAQ composite exchange climbed 16 percent.
Analysts cited The Brown Group, St. Louis; Genesco, Nashville; and Stride Rite Corp., Boston, as well as Wolverine World Wide, Rockford, Mich., and F.W. Woolworth Co. here as the most likely takeover or leveraged buyout (lbo) candidates among shoe issues.
L.A. Gear, Los Angeles, and Nike Inc., Beaverton, Ore., were the best stock performers among footwear issues. Both companies top a number of analysts' recommended lists, powered by strong operating results.
Wall Streeters have raised 1989 earnings estimates for Edison Bros., St. Louis, and the company has become a new favorite on Wall Street as a turnaround situation.
L.A. Gear has exceeded analysts' expectations, tripling its operating profits and sales in the first half of 1989, as it broadened its image from fashion athletic footwear into apparel and men's performance shoes. The stock, which traded at 56 3/8 in …