Fossil Inc. (FOSL): Today's Featured Consumer Durables Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Fossil ( FOSL) pushed the Consumer Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 2.5%. By the end of trading, Fossil rose $9.60 (11.4%) to $93.60 on heavy volume. Throughout the day, 2.4 million shares of Fossil exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $84.25-$93.69 after having opened the day at $84.25 as compared to the previous trading day's close of $84. Other companies within the Consumer Durables industry that increased today were: Virco Manufacturing Corporation ( VIRC), up 77.7%, Furniture Brands International ( FBN), up 37.4%, Kid Brands ( KID), up 13.6%, and LSI Industries ( LYTS), up 6.7%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. Fossil has a market cap of $5.11 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.5, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Thursday. Currently there are five analysts that rate Fossil a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Fossil as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Global-Tech Advanced Innovations ( GAI), down 6.1%, Black Diamond ( BDE), down 4.8%, SGOCO Group ( SGOC), down 4.1%, and Cybex International ( CYBI), down 4%, were all laggards within the consumer durables industry with Clorox Company ( CLX) being today's consumer durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

These Are the 27 Companies You Must Watch Ahead of Apple's Big Launch Event

Here's How Apple Could Surprise Us With an Improved Apple Watch

How Fitbit's New Smartwatch Can Boost Its Sagging Top Line

Random Action as Market Prepares for Jackson Hole