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 0.7%. By the end of trading, Fossil fell $2.34 (-2.6%) to $87.65 on light volume. Throughout the day, 626,384 shares of Fossil exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $87.40-$90.94 after having opened the day at $90.30 as compared to the previous trading day's close of $89.99. Other companies within the Consumer Durables industry that declined today were: Tempur-Pedic International ( TPX), down 19.5%, iRobot Corporation ( IRBT), down 19.1%, Elecsys Corporation ( ESYS), down 9.3%, and Johnson Outdoors ( JOUT), down 6.4%.
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Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. Fossil has a market cap of $5.44 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.6, equal to the average consumer durables industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Tuesday. Currently there are six 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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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