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 $1.06 (-1.3%) to $79.66 on light volume. Throughout the day, 645,563 shares of Fossil exchanged hands as compared to its average daily volume of 997,500 shares. The stock ranged in price between $79.58-$82.43 after having opened the day at $81.28 as compared to the previous trading day's close of $80.72. Other companies within the Consumer Durables industry that declined today were: Virco Manufacturing Corporation ( VIRC), down 12.1%, SGOCO Group ( SGOC), down 10.6%, Leapfrog ( LF), down 10.3%, and Appliance Recycling Centers ( ARCI), down 8.1%.
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Fossil, Inc. designs, develops, markets, and distributes consumer fashion accessories worldwide. Fossil has a market cap of $4.96 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are up 2.7% year to date as of the close of trading on Friday. Currently there are six analysts that rate Fossil a buy, no analysts rate it a sell, and six 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.

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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