Post-Market Laggard: Fossil Group (FOSL)

Trade-Ideas LLC identified Fossil Group (FOSL) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Fossil Group

(

FOSL

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Fossil Group as such a stock due to the following factors:

  • FOSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.8 million.
  • FOSL is down 11.2% today from today's close.

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More details on FOSL:

Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories. The company operates through four segments: North America Wholesale, Europe Wholesale, Asia Pacific Wholesale, and Direct to Consumer. FOSL has a PE ratio of 8. Currently there are 2 analysts that rate Fossil Group a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Fossil Group has been 1.0 million shares per day over the past 30 days. Fossil Group has a market cap of $2.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.93 and a short float of 22.5% with 5.97 days to cover. Shares are down 53% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fossil Group as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, FOSSIL GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for FOSSIL GROUP INC is rather high; currently it is at 58.25%. Regardless of FOSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.38% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income increased by 4.0% when compared to the same quarter one year prior, going from $52.52 million to $54.65 million.
  • FOSL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.88%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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