Gilman Hill Asset Administration’s Jenny Harrington is betting on Foot Locker as the vacation season kicks off, saying the inventory is reasonable and provides extra upside from right here. “The theme is that the shares of those firms had been punished as if the patron was simply gonna lay down and die and by no means spend any cash once more,” she instructed CNBC’s “Halftime Report” on Wednesday as she named her favourite retail inventory picks. “And guess what, American customers are extraordinarily resilient, and so they proceed to spend.” Shares of Foot Locker are low cost, in keeping with Harrington, with the inventory final buying and selling at a price-to-earnings ratio of roughly 8 instances. She additionally highlighted the corporate’s share buybacks — and a dividend yield of 4.3% in keeping with FactSet — as causes she’s betting on the inventory. Whereas down about 15% this yr, Foot Locker’s inventory has bounced again 17% this month, and rose about 3% Wednesday. The sportswear retailer shared earnings this month that surpassed Wall Avenue’s expectations and lifted its forecast for the complete yr. CEO Mary Dillon instructed CNBC’s “Squawk Field” final week that customers are exhibiting resilience regardless of a murky macro surroundings. To make sure, buyers ought to proceed cautiously when selecting retail shares on this surroundings, Harrington stated. The sector is holding on however not faring all that nicely, which means buyers seemingly will not get the earth-shattering upside returns they bought after they bought the shares at earlier lows, she stated. “I feel the tremendous extremely low-hanging fruit was there in the summertime and also you missed it,” she stated. “You are not gonna stand up 40% from right here and up 30% from right here, however to some extent, there may be nonetheless low-hanging fruit.”