Strong On High Volume: Fossil Group (FOSL)
Trade-Ideas LLC identified
(
) as a strong on high relative volume 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 $135.6 million.
- FOSL has traded 1.3 million shares today.
- FOSL is trading at 8.70 times the normal volume for the stock at this time of day.
- FOSL is trading at a new high 3.03% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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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 1.1 million shares per day over the past 30 days. Fossil Group has a market cap of $2.5 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 22.2% with 2.36 days to cover. Shares are down 70.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates Fossil Group as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The gross profit margin for FOSSIL GROUP INC is rather high; currently it is at 56.72%. 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 7.45% trails the industry average.
- FOSL, with its decline in revenue, underperformed when compared the industry average of 15.6%. Since the same quarter one year prior, revenues fell by 13.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to -$28.01 million or 166.04% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 44.5% when compared to the same quarter one year ago, falling from $103.72 million to $57.53 million.
- You can view the full Fossil Group Ratings Report.
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