Shares of Foot Locker (NYSE: FL) were up 6% as of 11:30 a.m. ET on Thursday, a day after the athletic retailer cuts its forward earnings guidance and paused its quarterly dividend. 

Analysts were lowering their near-term earnings estimates for the company, but the steep sell-off on Wednesday attracted bargain hunters that provided support for the stock.

The correction in the stock following disappointing earnings news yesterday appears to be priced at these share prices. Even as analysts revise their earnings estimates for the full year, Foot Locker now trades at a forward price-to-earnings ratio of 8.7, which is consistent with its previous trading history. 

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Source Fool.com