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

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 lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Fossil fell $1.62 (-1.9%) to $84.70 on light volume. Throughout the day, 679,637 shares of Fossil exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $83.86-$85.87 after having opened the day at $85.56 as compared to the previous trading day's close of $86.32. Other companies within the Consumer Durables industry that declined today were: SGOCO Group ( SGOC), down 5.8%, Global-Tech Advanced Innovations ( GAI), down 5.2%, Industrie Natuzzi ( NTZ), down 5%, and Koninklijke Philips Electronics ( PHG), down 4%.
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Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. Fossil has a market cap of $5.12 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 6% 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 positive front, Koss Corporation ( KOSS), up 4.6%, Leapfrog ( LF), up 3.1%, Acme United Corporation ( ACU), up 3%, and Jakks Pacific Incorporated ( JAKK), up 2.4%, were all gainers within the consumer durables industry with Hasbro ( HAS) being today's featured consumer durables industry leader.

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).

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